CONOCOPHILLIPS ConocoPhillips

First Quarter 2012

Faces of the Future: ConocoPhillips and Phillips 66 emerge spirit Magazine First Quarter 2012 “Energy production creates jobs.”

“We need to protect the environment.”

Each wants the best for our country. So how can we satisfy both — right now? At ConocoPhillips, we’re helping to power America’s economy with cleaner, affordable natural gas. And the jobs, revenue and safer energy it provides. Which helps answer both their concerns. In real time.

To find out why natural gas is the right answer, visit PowerInCooperation.com © ConocoPhillips Company. 2011. All rights reserved. Sharing Insights

Five years ago, I wrote the first Sharing Insights letter for the new spirit Magazine. Since then, the magazine has documented a pivotal time in our company’s history, consistently delivering news and information to a wide-ranging audience. More than 7,000 employees have appeared in its pages. Remarkably, as the magazine grew, so did the number of employees who volunteered to contribute content. When your audience is engaged enough to do that, you know you are making a difference. Now, as we approach the completion of our repositioning effort, I am writing in what will be the final issue of spirit Magazine for Jim Mulva Chairman and CEO the integrated company. I have little doubt that both ConocoPhillips and Phillips 66 will continue to offer robust and engaging internal communications. But it seems fitting that this final issue includes a variety of feature articles, news stories and people profiles that reflect the broad scope of our work across upstream and downstream and the rich heritage of our history. From the Alberta oil sands to Ferndale Refinery, this issue captures in time the pre-split ConocoPhillips and the many dedicated people who have established a sound foundation for our next evolution into two independent pure-play companies. The culmination of our repositioning work is upon us, and a change of this magnitude understandably brings a mix of emotions. Routines will be disrupted; some traditions will come to an end; and colleagues will be missed. At the same time, new opportunities will open up for those with the foresight and passion to seize them. As I prepare to retire, my mind is flooded with memo- Jim Mulva at the 20th World Petroleum Congress (WPC) in Doha surrounded by some of the many company and industry colleagues ries of all the people who have who have become like a second family over the nearly four decades become my second family, and of his career. For more information on the WPC, turn to page 74. of all the great work we have done together. There is no industry quite like ours. I have been privileged to participate in this very noble endeavor for nearly four decades. Along the way, I never lost my fascination with the scope and size of the work we do, the investments we make, the advanced technology we pioneer, and the importance of the product we deliver to the world. It’s not easy to walk away, but I retire knowing that I leave two great companies in very capable hands. Your hands … Thank you for nearly 39 thrilling years.

spirit Magazine 1 spirit Magazine First Quarter 2012 Contents

ConocoPhillips in Photos 6 10-year Retrospective

The future is now | Ray Scippa, Aftab Ahmed, 14 Karen Sivils and Summer Austin ConocoPhillips and Phillips 66 are ready to emerge

Oil sands collaboration | Tami Hutchinson 22 Unusual business has become business as usual

Ferndale Refinery | Monica Silva and 28 Jeff Callender Embracing all things new

Paving the way to wellness | Kathryn Donelson 36 ConocoPhillips supports employees’ healthy efforts

To 2015 and beyond! | Nellie Betzen 44 Global Marketing prepares for a prosperous future

Faces of ConocoPhillips 54 Joachim Asmussen Cecil Galloway Shirley Stevens Coyner

In the News 62 A compilation of news from around ConocoPhillips’ world

An acute focus on protecting the environment is second nature at Ferndale Refinery. To the

Editor Our readers respond

I think this (fourth quarter 2011) might be I am a Phillips retiree who served in Norway and the best issue you have done. Outstanding job! Libya. I look forward to each spirit Magazine and A very nice balance of informative images and enjoy each article. Of course, I most enjoy articles copy. I hope the management understands how about the North Sea and Libya. Thank you for much public relations a magazine like spirit including me! generates for the company. Cecil Ingram Jerry Poppenhouse I admire the courage and workmanship of what I wanted to compliment you and the staff on I see and read in ConocoPhillips’ spirit Magazine, the quality of spirit Magazine. It’s very profes- and in all of the company’s public press. Making sionally done, with good articles and excellent connections and delivering messages both inter- photography. It even has the little details like dif- nally and externally was a big part of my 34 years ferent backgrounds for different stories, like the in Marketing for Conoco, so I know how difficult a camo at the bottom of the pages on veterans, job it can be. You are truly enhancing the com- which shows the amount of attention and work pany’s image. Keep up the good work! you all put into it. H.S. Campbell You all are doing a great job with the maga- zine, and I enjoy reading it every quarter. Editor’s note: We welcome your comments, sugges- Thanks, tions and contributions. Send them in or call us using the Ian Kress contact information below. Be sure to include suggestions Drilling Engineer for follow-up articles. ConocoPhillips Norway Address mail to spirit Magazine, ConocoPhillips, MA3132, P.O. Box 2197, Houston, TX 77252-2197; send email to the editor at ray.scippa@conocophillips.com; or call 281-293-6169.

On the Cover | design by Michelle Gunnett Faces of the future ConocoPhillips and Phillips 66 include (from left) Howard Butler, Billings Refinery; Sabine Muttentaler, JET brand, Austria; Javier Pardo, Global Business Development; Peitai Wang, ConocoPhillips China; and Karina Shahab, ConocoPhillips Indonesia. Then & now text and photography by Garth Hannum

Qatargas One of the most interesting aspects of my job the oil and gas industry has on the economic is getting to document ConocoPhillips’ mega proj- growth of countries all over the globe. ects around the world from start to finish. Show- On one of my first trips to Qatar, in March of ing employees, and hopefully the general public, 2004, we visited Ras Laffan Industrial City, and I the amount of investment, engineering, logistics photographed Jon Glover and Bobby Kassamali and work-hours it takes to complete one of these standing in an open field that was soon to become projects is important in understanding the impact part of the giant Qatargas 3 project, the largest LNG complex in the world. The next photo, taken in December of 2011, shows Nigel Basey-Fisher, Stephen Mayo, Alan Nielson and David Twaite in front of the com- pleted Train 6, a 7.8 MTPA LNG joint venture among ConocoPhillips, Qatar Petroleum, and Mitsui & Co. LTD, which delivered its first LNG cargo in November of 2011. With 33,000 peak workers representing more than 50 countries around the world, speak- ing nine major languages and 42 dialects, one can also imagine the challenges in conveying ConocoPhillips’ safety culture to such a diverse workforce. Yet, by doing so, it helps spread an influence of change for the better to a vast num- ber of skilled and unskilled laborers.

Above: Jon Glover and Bobby Kassamali Right: Nigel Basey- Fisher, Stephen Mayo, Alan Nielson and David Twaite Wood River One of the great downstream capital projects I’ve documented for Conoco­ Phillips has been the Wood River Coker and Refinery Expansion, or CORE, Project. North American mega projects face many of the same challenges that Left: Concrete pylons are poured to support overseas operations do because some of the coke drums and the complex components, for various derrick struc­tures. reasons, must be fabricated in different Below: The nearly parts of the world and then shipped to completed CORE the destination by a variety of transporta- Project tion methods. This was especially true of the 2-million-pound, 209-foot vacuum tower, which was built in Italy, and four 1.1-million-pound coke drums, which were manufactured in Belgium (see the 2010 eStream OnDemand video on this project). Moving these vessels meant overcoming transportation and weather- related challenges as well. This project showcased ConocoPhillips’ teamwork and knowledge sharing at their fullest. Overall, the CORE Project has a long list of advantages for Midwestern mar- kets. The most obvious being creation of construction and permanent refinery jobs and reduced emissions. Clean product yield has increased by five percent and heavy crude oil capacity is expected to increase between 90,000 and 110,000 bpd dependent on the quality of available heavy crude. The CORE Project will allow the refinery to process more heavy Canadian crude from the concrete pylons being poured, which would sup- oil sands in Alberta, which in turn will provide a port the four coke drums and derrick structures. safe, stable, secure and abundant source of clean The bottom image, taken just over two years later energy for years to come. in October of 2011, shows the nearly completed The top photo, taken in June of 2009, shows the CORE Project in all its glory. ConocoPhillips

in Photos 10-year Retrospective

ince the merger of Conoco and Phillips in Patrick Currey; Principal Geochemist Albert S2002, the company’s growth has been well Holba; and several other long-time contractors, documented by talented photographers. Most including John Smallwood, Hall Puckett, Nash familiar to spirit Magazine readers is the prolific Baker, Kjetil Alsvik, Enrico Sacchetti, Matthew work of Senior Videographer Garth Hannum, Lyons and Ken Childress. whose travels have taken him around the globe, In the pages that follow, we take a 10-year often subjecting him to extreme conditions, but journey through some of the more memorable always resulting in behind-the-scenes images photos produced by these and other contributors, that make us proud. Other photo contributors fondly remembering the path that has led us to the include Senior Videographers Rich Ostrem, Paul company’s next evolution into two leading inde- ’02 Onstream MacFarlane and Dennis Mitchell; Video Lead pendent pure-play companies. While the future is magazine debuts Jim Spanos; Contract Writer/Photographer bright, the past is surely worth a second look …

2002 | Above: Team members brave the 2003 | The Polar Discovery under Canadian Arctic chill to construction at the Avondale shipyard in complete the Parsons Louisiana is one of a series of five tankers Lake Seismic Project. This built for ConocoPhillips. natural gas reservoir in Canada’s Mackenzie Delta is about two miles below the surface. Above right: Jim Mulva (left) and Archie Dunham, former Conoco chairman, raise the new corporate flag shortly after the merger of Conoco Inc. and Phillips Petroleum Company was completed.

6 ConocoPhillips 2003 | Ekofisk was the first commercial oil field in the Norwegian North Sea. Headquartered in Tananger, ConocoPhillips Norway is the country’s third-largest energy company.

2004 | Above: The Magnolia extended tension leg platform (ETLP) is towed out into the Gulf of Mexico. The world’s deepest ETLP at 4,698 feet, Magnolia’s design capacity is an estimated daily production of 50,000 BBL of oil and 150 million cu. ft. of natural gas. Left: Oil sands operations in Surmont, Canada. Oil sands refers to a layer of sand that, through the ages, became soaked in oil that migrated from deeper rock. The oil’s lighter hydrocarbons gradually separated and dissipated, leaving behind bitumen, which is thicker than the tar used on roads.

spirit Magazine 7 ConocoPhillips in Photos

2003 | Ekofisk was the first commercial oil field in the Norwegian North Sea. Headquartered in Tananger, ConocoPhillips is Norway’s third-largest energy company.

2005 | Top: The three ConocoPhillips U.S. fuel brands, 76®, Phillips 66® and Conoco®, have rich heritages and loyal customer bases. Right: ConocoPhillips’ Whitegate Refinery, located in Cork Harbour, is the only refinery in Ireland.

2006 | Above: Garth Hannum took this shot of a Lower 48 pump jack in the state of Wyoming, standing in picturesque contrast against the sunset.

8 ConocoPhillips ConocoPhillips in Photos

’06 Onstream magazine ends

’07 spirit Magazine debuts

2007 | Left: Patrick Currey captured the spray pattern of a Hired Gun® monitor atop one of the Bayway Refinery’s 2,000-gallon-per-minute pumpers. The Bayway Refinery Emergency Response Team includes personnel trained to handle emergency medical situations, firefighting, hazmat incidents and confined-space rescue.

2006 | The chief of one of the Nenets collective farms cares for his reindeer. Social programs funded through the Naryanmarneftegaz joint venture are providing aid to the indigenous peoples in the area around Yuzhno Khylchuyu.

spirit Magazine 9 ConocoPhillips in Photos

2007 | Above: A Sumatran worker carries a bale of rubber. ConocoPhillips’ community assistance in Indonesia supports local enterprise and helps change lives. Left: Chairman and CEO Jim Mulva during the landmark grand opening of the Phillips historical museum in Bartlesville, Okla. Far left: Tremendous effort by highly skilled employees resulted in a successful dual maintenance shutdown for the Bayu-Undan offshore producing field and the Darwin LNG (liquefied natural gas) Plant onshore.

2008 | On assignment for spirit Magazine, Video Lead Jim Spanos (left) and Senior Videographer Garth Hannum enjoy the view from atop the Tyonek Platform in Cook Inlet, Alaska.

10 ConocoPhillips ConocoPhillips in Photos

Above: Principal Geochemist Albert Holba’s photographs were featured in the fourth-quarter 2009 spirit Magazine, including this closeup of a rose taken one block from London’s Salisbury Cathedral.

2009 | The Peng Bo FPSO is connected to the soft yoke mooring system (SYMS) tower in Bohai Bay. Work began in 2005 on Peng Bo, a massive structure whose hull alone measures some 323 meters in length (353 yards) with the capacity to process nearly 200,000 BOD and enough space to store 2 million more.

Right: With new coke drums delivered via the Mississippi River in the background, Prepare to Operate Manager Val Huntsman displays the enthusiasm and optimism of the Wood River CORE Project team. Below: This picturesque Santa Fe-style train depot in Bartlesville, Okla., today houses the city’s chamber of commerce and can be seen from the ConocoPhillips campus.

spirit Magazine 11 ConocoPhillips in Photos

2010 | Above left: Interns are an integral part of the ConocoPhillips team. During their terms, they work hard and play hard. Volunteering at the Houston Zoo, Intern Susan Rudolph pets a giraffe. Above right: Peruvian children, who make up about half of the population in ConocoPhillips’ exploration blocks in that country, always lend a helping hand. Left: LNG vessel loading up at the state-of-the-art Darwin LNG facility in Australia Below: The complex and sophisticated Humber Refinery is the only coking refinery in the U.K. It also has a well-deserved reputation for being clean and green.

12 ConocoPhillips ConocoPhillips in Photos

2011 | Above: West Coast Lease Crude Manager Dorene Ruiz poses in front of the Bakersfield Heritage Mural at the Kern County Museum. Left: A JET fuel delivery arriving at a station, displaying the famous blue and yellow colors of the JET brand Below left: A view of the award-winning visitors’ entrance and wellness center at ConocoPhillips’ Houston headquarters. Below: ConocoPhillips’ new Australia Pacific LNG (APLNG) Gladstone office at dusk

spirit Magazine 13 Repositioning The future

is nowby Ray Scippa ConocoPhillips and Phillips 66 are set to emerge from successful repositioning effort

14 ConocoPhillips he final countdown to Day One has begun. At spirit Magazine’s press time, less than 60 days remained before the anticipated split date. So what began on July 14, 2011, with an announcement letter to employees, is approaching reality Tthanks to countless extraordinary efforts. The months since that first day have been packed with activity, as reported through an ongoing stream of employee communications (see Communications timeline, Page 18).

Throughout February, several milestones were met transition, particularly one as far-reaching as the and progress was made toward others, with all the repositioning. Consequently, few differences will be actions undertaken to not only achieve the reposition- seen in current programs and plans. Some decisions ing but also ensure the long-term competitiveness may be made on specific compensation and benefits of the future ConocoPhillips and Phillips 66 in their considerations after the repositioning is complete. industries (see accompanying charts). For example, the repositioning teams made steady progress on Workforce Plan- How the new companies will compare ning. Before the end of the month, Conoco­ ConocoPhillips Phillips employees in functional and support Worldwide Production (MBOED) Worldwide Reserves (MMBOE) group positions had received communications regarding their roles going forward. 5,000 25,000 Additionally, in a Feb. 13 email, Ryan Lance 4,000 20,000 and Greg Garland assured employees that 3,000 15,000

just as the company’s long-standing commit- 2,000 10,000

ment to safety would remain unchanged, so 1,000 5,000 would the principles behind compensation 0 0 and benefits programs and plans. “We will XOM CVX COP APA OXY APC DVN CNR XOM CVX COP CNR OXY APA DVN APC continue to pay for performance and provide compensation and benefits that competitively Phillips 66 position both future companies within their Global Re ning Capacity (MMBD) Global Nelson Complexity industries,” they said. 6,000 12 Accordingly, the transition team has made 5,000 10 the development of compensation and benefits 4,000 8 structures for the two future companies for 3,000 6 2013 and beyond one of its key priorities. In 2,000 4 designing these plans, Human Resources recog- 1,000 2 0 0 nized that employees were already experiencing XOM BP VLO PSX CVX MPC TSO PSX MPC VLO CVX XOM TSO BP

the stress that is inherent to any organization All data is estimated based on best publicly available information at press time.

spirit Magazine 15 Repositioning

March investor update by Aftab Ahmed

n March 5, Chairman and CEO Jim energy companies is intended to help grow value Mulva presented to investors in New for shareholders by unlocking the potential of their York an update on the company’s assets and employees, providing both companies Operformance and repositioning progress, as well with the best way to succeed and ensure com- as the future prospects and competitive strengths petitiveness over the long term. of the new ConocoPhillips­ and Phillips 66 companies. The new ConocoPhillips­ ConocoPhillips­ will be the industry’s largest pure- Strategic plan update play exploration and production company. Its ConocoPhillips­ is in the latter stages of a three- competitive strengths will include: year strategic plan to reposition the company. • Unique positioning to create differential value The plan is focused on optimizing the portfolio, through a diversified portfolio generating enhancing returns, strengthening financial flexibil- cash flow growth and strong shareholder ity and increasing shareholder distributions. distributions. Through 2011, progress has been strong, with • Continuing strong reserve replacement total dispositions, including LUKOIL, of more than exceeding 100 percent at competitive finding $20 billion; improvements in both return on capital and development costs. employed (ROCE) and cash return on capital employed (CROCE), as well as unit margins; • A disciplined approach to capital alloca- $6 billion reduction in debt; a 32 percent dividend tion, through investing in the highest-return increase; and $15 billion in share repurchases. projects. Further portfolio optimization through divest- • Strong growth from global major projects, with ment of nonstrategic assets, as well as share high-margin liquids and LNG driving annual repurchases, will continue in 2012. The planned average production growth rates of 3 to second-quarter repositioning into two leading 5 percent.

16 ConocoPhillips Repositioning

• Significant future opportunities through global employed in the company.

exploration of conventional and unconventional • Phillips 66 will benefit from a flexible financing resource plays, including deepwater and shale position and a BBB/Baa1 credit rating earned prospects. through the company’s strong commitment to plan execution. Phillips 66 Phillips 66 will be a uniquely integrated down- Repositioning update stream company, with segment-leading refining Jim Mulva also provided details of the latest and marketing and midstream and chemicals developments in the transition of ConocoPhillips­ businesses. into two leading energy companies. This included confirmation that issuer credit ratings had been • Differential value will be generated through received for Phillips 66, bank financing is com- a unique combination of shareholder focus pleted, and plans are being made to access debt and growth opportunities across a diversified markets prior to the separation. The timeline for portfolio. the Phillips 66 share distribution approval and • The company will enjoy a competitive refining issue was also outlined, along with the expected position domestically and worldwide. dividend schedule for both companies. • The midstream and chemicals businesses If you have not already done so, view the replay have multiple large-scale growth projects of this presentation, available on the Repositioning that will increase their proportion of capital website under Video Library.

This is primarily to allow for 2012 market data to reflects the values and winning spirit of Phillips 66,” become available so that this benchmarking infor- said Garland, CEO designee, Phillips 66. “Our mation can be used in specific compensation and options are to build a new building, which would benefits considerations going forward. take two to three years to complete, or to find a Since timely and transparent communication building that could be modified to fit our needs.” of such high-interest news is essential, a dedicated As the final countdown toward Day One contin- Compensation and Benefits page on the Reposition- ues, new and exciting details are emerging almost ing ConocoPhillips intranet site was launched with a daily, including the name of the new Phillips 66 video from Carin Knickel, vice president, Human intranet site, Connect 66; logo standards, design Resources, providing details about the 2013 pro- usage guidelines and signage for the Phillips 66 grams and plans. corporate logo; and step-by-step work tools and Among the milestones yet to be achieved is services information to help employees move finalizing a new Phillips 66 headquarters loca- forward to Day One and beyond. tion. The goal is finding a permanent facility with There are many tasks remaining for comple- capacity to hold up to 2,000 people, sufficient to tion by Day One, and some work will extend hold all Phillips 66 Houston personnel. for several months beyond. But the future for “We want a convenient location and a work envi- ConocoPhillips and Phillips 66 is now definitely ronment that employees can be proud of and that taking shape. ■

spirit Magazine 17 Repositioning

Communications timeline through January 2012

July December 15 Jim Mulva holds global town hall webcast. 2  Black Employee Network holds Preparing 20 Transition Team structure announced. for Change panel. 27 Repositioning intranet site established. 8  Workforce Planning site launched with CEO designees’ email to employees. August 9  Blog post from Dean Acosta on 11  Answers to first 50+ employee questions repositioning communications. are published. 12  Repositioning in Less Than 45 Seconds 25  Strategic Rationale article for the video posted on Workforce Planning. repositioning posted. 21  Greg Garland and Ryan Lance blog posts. September 21  Phillips 66 names senior leaders Greg 6  Jim Mulva presents at Barclays 2011 Maxwell, Tim Taylor and Chantal Energy‑Power Conference. Veevaete. 19  Repositioning in Less Than 45 Seconds transition team videos posted. January 23 spirit Magazine cover story. 8 spirit Magazine cover story on repositioning progress. October 9  Phillips 66 names additional members to 3  An additional 120 employee questions are board of directors. answered. 9  Phillips 66 NYSE ticker symbol PSX 7  Ryan Lance and Greg Garland are named revealed. as designated CEOs. 11  Senior leadership updates issued for both 13  External Repositioning website established. companies. 19  Jim Mulva, Ryan Lance and Greg Garland 12  Repositioning town hall webcast with appear on Perspectives video. Ryan Lance and Greg Garland. 19  Workforce Planning leads Michael Hatfield 17  Organizational update from Jim Mulva. and Doug Johnson are named. 19  Senior leadership update from Ryan 21  Repositioning asset map released. Lance. 26  Overview on IRS Ruling and Form 10 25  Workforce Planning FAQs posted. published. 27  Phillips 66 leadership announcement.

November 30  Our Business: A Closer Look on 7  Blog post on media tracking of repositioning. Workforce Planning. 10  Name and location city of downstream company headquarters announced. 14  Senior leadership update provided from Jim Mulva, Ryan Lance and Greg Garland. 21  Upstream senior leaders Matt Fox, Al Hirshberg and Don Wallette are announced. 29  CEO designees speak at BRSC Conference; video published.

18 ConocoPhillips Repositioning

Phillips 66 financing Q&A with Fran Vallejo

By Aftab Ahmed A: At separation, we expect key part of setting up Phillips 66 to retain a minimum of Phillips 66 for success $2 billion in cash and to distrib- involves developing a ute approximately $5.8 billion to Conoco­Phillips, the majority of Afinancing plan for the new com- pany. Fran Vallejo, vice president which is expected to be used for and treasurer, heads up the debt reduction. transition subteam on financial structuring. She recently pro- Q: Can you describe the liquid- vided insight on how this financ- ity facilities that Phillips 66 will ing plan is coming together. have in place? A: We have in place a five-year and Moody’s, respectively, for Q: Fran, at a high level, can you revolving credit facility for $4 bil- Phillips 66, with Conoco­Phillips describe the main components lion with favorable financial terms expected to retain its A/A1 of the Phillips 66 financing and market pricing. We also ratings. plan? expect a receivables securitiza- A: The financing plan for tion facility (funds secured by Q: When will all these financing Phillips 66 is comprised of debt our accounts receivable bal- arrangements be finalized? and liquidity (such as cash and ances) of approximately $1 bil- A: We expect to have all bank line of credit) facilities. Debt will lion. Combined with a $2 billion borrowings, the receivables be used to provide the necessary cash balance, Phillips 66 will securitization facility and bond financial support for the spin-off have approximately $7 billion in issue finalized over the next few from Conoco­Phillips and establish liquidity. months, before the spin date. the desired levels of debt-to- capital in Phillips 66. Liquidity Q: With which banks will Q: Thanks, Fran. Is there facilities will provide financial Phillips 66 have these debt anything else we should know flexibility for the general purposes arrangements and liquidity about the Phillips 66 financing of running the company. facilities? plan? A: Phillips 66 intends to establish A: A team from Treasury, Tax, Q: How much debt will and maintain credit relationships Controllers, Legal and various Phillips 66 take on at with approximately 30 international other groups is working hard to separation? banks. A small number of large, complete the necessary steps A: Phillips 66 has issued $7.8 bil- global corporate banks chosen to put all the financing arrange- lion in new debt through bank from those with long-standing ments in place. Both companies and bond markets and accepted relationships with Conoco­Phillips will be positioned with strong assignment of $0.2 billion of exist- will lead in arranging the new bank balance sheets and significant ing ConocoPhillips debt associ- financings, liquidity facilities and financial flexibility so they are ated with downstream operations. debt issuance. able to capture opportunities and $5.8 billion of the new debt has strategically adapt to their market been raised through issuing Q: What about credit ratings environments. bonds with long-term maturities – when will we know what the ranging from three to 30 years. ratings will be for Phillips 66 Learn more about Phillips 66’s The remainder consists of a three- and Conoco­Phillips as two financing arrangements by year-term loan. separate companies? reviewing the Phillips 66 A: Both companies will have Form 10 at www.Conoco­Phillips. Q: What will Phillips 66 do with strong, investment-grade credit com/investor and selecting the proceeds from this debt ratings. We have received rat- Phillips 66 SEC Filings. issue? ings of BBB/Baa1 from S&P

spirit Magazine 19 Repositioning

Working together to ensure a successful repositioning by Summer Austin and Karen Sivils

he announcement of the repositioning and other,” Henthorne said. “There is a huge interde- resulting business changes may have many pendency among the services groups, and this is a of us wondering how we will be affected. massive, orchestrated process.” ButT have you considered the interdependencies that The Financial Services group is coordinating come with such a huge effort and what you can con- closely with IT on the critical targeted downstream tribute to the repositioning – and more importantly, its Far right: John success? Henthorne, director of strat- The work of our internal service groups facilitates egy, Corporate communication, interaction and interdependence IT, recommends across the company. And a vast number of complex employees clean changes in support of the repositioning are taking up their own electronic files place within these service organizations. Consider, for now so that example, how integrated our Information Technology unnecessary (IT) systems have become, such as SAP with more information is not copied and than 1,000 system and application interfaces. These stored during interfaces, or data feeds, ensure the right information the data cloning is routed to the right location, such as billing the cor- phase of the repositioning. rect customer when a Transportation truck pulls in to a rack for reloading. Luckily, we have teams working around the clock to figure out the best ways to ensure the new Conoco­Phillips and the new Phillips 66 both have what they need to operate successfully on Day One and beyond. dual close, the largest system cutover, taking place Experts from IT, Real Estate and Facilities Services April 27-30. This effort will copy the SAP systems, (REFS), Procurement, Financial and HR Shared providing each company with separate systems for Services, and other service organizations have their operations, books and records. been assembled to determine what each company Another group making certain everything is in order requires to operate optimally following the split. on Day One is Human Resources. Moving down- Though many critical tasks must be completed by stream employee information from the integrated data May 1, “There is at least as much to accomplish after in SAP is an enormous undertaking. To create the Day One as before Day One,” said John Henthorne, new Phillips 66 employee database, the HR and IT director of strategy, Corporate IT. This will require groups are coordinating a seven-day blackout period many services transition subteams to remain intact beginning April 27, when some self-service systems, beyond that date. such as Manager Express and HR Express, will be IT is the common thread that runs throughout unavailable. During this period, current employee the services’ repositioning efforts, enabling all these records will be duplicated for the Phillips 66 systems, groups to successfully separate and operate their and data will be validated to ensure only downstream systems. “But no one group can do this without the employees’ information is in the new system.

3820 ConocoPhillips Repositioning

Lanny Seals (left), strategic planner, REFS, and Tony Behar, senior con- sultant, Strategy Policy and Compli- ance, Real Estate Services, discuss the specific needs In addition to system separation, services groups contractors affected at other locations, such as of each group in are handling many other critical Day One items. The Washington, D.C.; Calgary; London; Singapore; and an effort to meet their goal of no efforts are too exhaustive to list, but include Real a few others. more than one Property Administration assigning 25 million pages “Move planning is like a giant jigsaw puzzle,” said office move per of legal ownership records to the proper company Lanny Seals, strategic planner, REFS. Many details affected person. legal entity, while creating necessary master data for and interdependencies must be considered when conveyance (property transfer) documents; Excise relocating a group, including available floor space, the Tax reapplying for 500 new licenses across 48 states; number of office units needed, adjacency preferences REFS updating 10,000 real estate documents to and building restrictions. Preplanning is crucial since ensure each company has the legal rights to operate REFS’ goal is no more than one move per affected their respective assets; and Procurement reviewing, person, if possible. updating and renegotiating, where necessary, nearly As Day One approaches, many may wonder how 39,000 materials and services contracts. and if they will be affected. Some things will change, The goal of these groups is to ensure a seamless such as Phillips 66 employees currently holding transition, and because of this, most employees and OneCards will receive replacement cards, and the contractors may not see a lot of differences between company will have a new email domain name – the way they work today and their jobs on Day One. P66.com. Other things won’t change, such as user In fact, many employees and contractors will be IDs, passwords, computers, company-issued mobile working in the same physical locations with the same devices and the Conoco­Phillips.com domain name. ID badges and access to the same facilities they A new Repositioning subsite, Moving Forward, have now. Some exceptions include Commercial was recently added to our intranet to help answer traders, who are required to be physically sepa- questions about such changes. rated Day One. The relocating of employees and But employees and contractors can take a crucial contractors to buildings owned by their respective step now to minimize the huge amount of server employers will affect more people in Bartlesville and space required to store information following data Houston than in other locations. cloning efforts. Everyone should review all elec- Bartlesville’s approximately 2,500 moves are antici- tronic data per Records Management guidelines, so pated to begin in the third quarter and be completed unnecessary information isn’t copied and stored. This by the end of the year. Once a headquarters facility also makes good sense because current owners can is determined and ready for Phillips 66, downstream make quicker, better-informed decisions about the employees and contractors who are affected will information than someone who inherits it as part of a be relocated. There will be some employees and new role.

spirit Magazine 21 Oil sands

22 ConocoPhillips Collaboration in the oil sands Business as unusual by Tami Hutchinson

anada’s oil sands, with their unique resource base, rapid growth Opposite page: In 2009, the OSLI com- and development plans, present a number of unique hurdles. These panies collectively planted approxi- challenges affect the whole industry – not just ConocoPhillips,­ which mately 170,000 trees on reclaimed drilling pads in an effort to plans to grow production 10 percent to 15 percent per year through accelerate the speed C at which these areas 2020. Now more than ever, public attention is focused on new are restored with mature trees. In 2010, technology, innovations, sustainability and environmental research. that number in- creased substantially Oil sands producers hope that joining forces will “I’ve worked all over the globe, and I’ve never with 247,000 trees allow for a more rapid adoption of technological seen an industry like the oil sands where collabo- planted. The five-year solutions that both lighten their environmental ration is predominantly driving performance lev- goal is an additional 1 million trees. footprint and reduce costs, thus benefiting con- els forward,” Olds said. “We are banding together sumers, as well as the public well-being. “We’re moving into an era of growing collabo- ConocoPhillips oper- ration within our industry,” said Nick Olds, senior ates the Surmont oil vice president, Oil Sands, ConocoPhillips­ Canada. sands project, lo- cated southeast of Fort “The key success in meeting the oil sands’ unique McMurray, Alberta, challenges will be bringing like-minded compa- Canada. nies together, pooling their financial resources and innovative ideas, and focusing on key areas to raise the industry’s overall performance.” This is no small feat. Producers are used to competing against each other – for land base, talent and investment dollars. Sharing ideas and innovation with competitors contrasts with conventional business practices that command fierce protection of every competitive advantage. Yet, the concept of open innovation has become prominent in Canada’s oil sands industry.

spirit Magazine 23 Oil Sands

“I’m proud to say that Conoco­Phillips was a key leader in industry collaboration and will continue as a driving force.” – Nick Olds

and raising the bar collectively.” operators to drive environmental, social and The oil sands industry is still competitive, but economic performance to new levels and set an many are now willing to park corporate egos and aggressive standard for the rest of the sector. work together on collective initiatives to improve After three years of hard work and creativity, the industry’s performance and reputation. Rather the idea was accepted by several other progres- than attempt to sell or license their intellectual sive oil sands producers. By April 2010, Conoco­ In April 2010, Rick property, oil sands companies will exchange Phillips Canada, along with Nexen, Statoil, Suncor George (Suncor), knowledge for the greater good. Energy, and Total E&P, signed a charter to Marvin Romanow (Nexen), Lars Chris- “I’m proud to say that Conoco­Phillips was a key formalize the creation of the Oil Sands Leader- tian Bacher (Statoil), leader in industry collaboration and will continue ship Initiative (OSLI). The group committed to Jean-Michel Gires as a driving force,” Olds said. “We will be part of improving the performance and reputation of the (Total E&P Canada), Steve Williams the solution.” sector through advancing a number of initiatives (Suncor) and Matt The steps toward collaboration started in 2007, that demonstrate and communicate environmen- Fox (Conoco­Phillips when Bob Mitchell, manager, Oil Sands Perfor- tal, social and economic performance. Canada) signed mance, Conoco­Phillips Canada, worked with “OSLI is going to do some great things and the OSLI charter, agreeing to work Gord Lambert, Suncor, and the late consultant is one of the things I’m most proud of in my collaboratively on Peter Dickey to push the boundaries of normal career so far,” Mitchell said. “I am blown away noncompetitive business practices by advocating industry collabo- by the power of collaboration that has been issues and share research and best ration at an unprecedented scale. They proposed demonstrated.” practices. to create an agreement between progressive OSLI has created working groups to focus on Oil Sands

performance improvement in the areas of land Left: A tree stewardship, water management, technology and planter is work- ing for OSLI’s sustainable communities. Each OSLI company Faster Forests develops its assets individually but works collabor- program aimed atively to achieve significant improvements in key at reducing the environmental performance areas, like environmental sustainabil- footprint by ity, social well-being and economic viability. accelerating “To date, those teams have conceived almost reforestation of oil sands 60 projects,” Mitchell said. “I am so pleased to see leases. how much they can imagine and then do by pool- Below left: ing their talent, resources and expertise.” Conoco­Phillips For example, in 2010, OSLI’s Land Stewardship Canada’s Working Group assembled a comprehensive land Surmont operations have disturbance map of the entire oil sands region. hosted technol- This map, created by walking the area’s all-terrain ogy pilot pro- vehicle trails, seismic lines and pipeline corridors, grams for some includes a database of known disturbances. OSLI’s of the industry’s collabora- member companies now use this tool to locate tive research conservation and reclamation efforts where they projects. will have the greatest impact. OSLI compels organizations to look at the broader picture and the greater good to see where it makes the most sense to focus its efforts, whether planting trees, initiating caribou protec- tion programs or carving out conservation offsets. They will then jointly direct financial resources and manpower to those areas – even those far away from any particular company’s land hold- ings. Piggybacking off ConocoPhillips­ Canada’s Faster Forests program, OSLI companies started their own Faster Forests initiative. The program speeds land reclamation by planting various species of trees. OSLI companies had planted an estimated 600,000 trees as part of this program by the end of 2011. “That demonstrated progress is helping reshape the oil sands conversation to become more con- structive and solutions-oriented,” Mitchell said. Technology is another big part of finding innova- tive solutions to oil sands issues. OSLI member companies have put up a total of $24 million to

spirit Magazine 25 Oil Sands

The company’s support primary research in fields like synthetic new industry group, Canada’s Oil Sands Innova- Surmont develop- biology, chemical engineering and nanotechnol- tion Alliance (COSIA), launched March 1 to build ment has now moved into Phase II, with ogy. The group has also held exploratory talks with on the successes of groups like OSLI. But where expected first produc- Virgin Group to study billionaire Richard Branson’s OSLI had five member companies at its inception, tion in 2015. Earth Challenge model of innovation. The venture COSIA has 12 – and they represent over 80 percent capitalist has promised $25 million to any firm or of oil sands production in Canada. The COSIA individual who successfully demonstrates a com- companies will work together with government, mercial technology for scrubbing unwanted carbon academia and the wider public to address environ- dioxide from the atmosphere. mental performance in four priority areas: tailings, “OSLI is dealing directly with both the environ- water, land and greenhouse gases. mental and social challenges associated with the The collaboration idea is also expanding outside extraction of the oil sands resource to ensure that of environmental performance and technology. while we’re providing energy to the world, we Highways 63 and 881, where ConocoPhillips’­ oper- are also making the world a better place,” said ations are located, have been the site of hundreds John LeGrow, vice president, Strategy, Oil Sands of vehicle-related injuries and dozens of fatalities Planning Strategy and Integration. “By working and are considered two of Canada’s deadliest together, we pool our talents and create better highways. So together, community members and solutions.” operators formed the Coalition for a Safer 63 and And this model is expanding. After seeing the 881. This initiative includes 21 member companies success of OSLI, oil sands collaboration is appear- cooperating to encourage greater public safety and ing in more places and on a much larger scale. A safe driving. ConocoPhillips­ Canada was a leader

26 ConocoPhillips Oil Sands

“By working together, we pool our talents and create better solutions.” – John LeGrow

in the campaign’s creation. “This organization is ultimately about saving the lives of family members, employees, friends and people in our community,” Olds said. “We’re proud to be a foundational part of it.” If past success is any indication, there are bound to be more of these strategic partnerships in all aspects of oil sands development. In four years, a small idea has changed the whole industry’s outlook. And these companies have shown that collaboration not only provides access to better solutions in economic and environmental perfor- mance, it can also minimize the negative impact on the communities closest to our operations. Here in the oil sands, unusual business has become business as usual. ■

Left: ConocoPhillips Canada employees Peter Zimmerman and Garrett Brown work with tree planters on OSLI’s Faster Forests initiative, which accel- erates reclamation of Alberta’s boreal forest by planting a wide range of native tree and shrub species. Above: Representa- tives from oil sands companies, technol- ogy groups, academia and government share ideas at an annual OSLI forum. Each working group was distinguished by a different bandana color to inspire cross- function discussions and sharing.

spirit Magazine 27 Ferndale refinery

estled in the most northwestern corner of the most northwestern state

in the U.S. lower 48, Ferndale Refinery sits among pristine hills with

mountains in the distance; frequently with deer on the green; and a cold, winter drizzle to keep a chill in the air. Kids in N Whatcom County, Wash., think of the refinery as a cloud-making company, based on the impressive steam billowing in the cold Pacific air. But Ferndale, the ConocoPhillips­ continental U.S. asset farthest from its Houston headquarters, is both a powerful refinery and home port of ConocoPhillips’­ Polar Tanker organization. (For more information on Polar’s future with the new ConocoPhillips­ , see the story on Page 31.) And thanks to a passionate workforce, along with a decade of urban renewal, the 100,000 barrel per day refinery maintains a HSE Manager Ryan Biggs successful focus on continuous improvement in every aspect of its business.

28 ConocoPhillips An era of new Ferndale Chemist The era of “new” began at Ferndale long before Rikki Smeltzer any mention of the term repositioning. Not only will Ferndale Refinery be part of the new Phillips 66 organization, but with new talent, building for our future.” a fresh perspective and several updates to the Today, Ferndale processes 100,000 barrels of nearly 60-year-old facility, you would think the crude oil per day, much of which is delivered via refinery was a recent addition to the landscape Polar Tanker. The crude is then processed into a of Washington, not the first full-scale refinery product slate of gasoline, ultra-low-sulfur diesel constructed in that state. fuel, propane, fuel oil and sulfur, resulting in “We are absolutely in a time of renewal,” said more than 1 billion gallons of transportation fuels Marjorie Hatter, manager, Ferndale Refinery. per year. Ferndale Refinery is the primary gaso- “Two-thirds of my unit engineers are 30 years line supplier for 76® brand stations throughout old or younger, and 40 percent of our employees the Pacific Northwest. have been hired within the last five years. We Additions over the past decade include a new have been able to benefit from a fresh set of laboratory, centralized control room, fluid cata- eyes to come in and help us take the refinery to lytic cracker, sulfur plant, SZorb® unit, boiler and the next level, whether it be new process safety enhanced wastewater treatment plant. The facility implementations, a new strategy for our upcom- is also in the final stages of a multiyear project to ing turnaround, or just clearing out old equip- upgrade the electrical system for better efficiency ment and putting in new. We are dedicated to and long-term viability.

In the state of urban renewal Ferndale Refinery embraces all things new by Monica Silva, with Jeff Callender

spirit Magazine 29 Ferndale Refinery

“We’re not the only refinery in Washington state, but we want to be the one all of the others look to as the standard.” – Josh Ross

“We are proud of where we work,” said Ryan processes, we are all working toward 100 percent Biggs, HSE manager. “We want our home to look compliance, 100 percent of the time,” Biggs said. excellent. But it’s not just about housekeeping; it’s “Although we are a relatively small plant, we have about taking pride in our facility.” as much to focus on as any of the large facilities Safety Superintendent Josh Ross agrees. “It’s so when it comes to safety. Our HSE folks wear a lot nice to be able to see the change in the refinery, of hats, which makes us all well-rounded and not the improvements on so many levels. We’re not too specialized in any one area.” the only refinery in Washington state, but we The team takes pride in identifying leading want to be the one all of the others look to as the indicators versus lagging indicators. standard,” Ross said. “It’s a lot easier to identify what went wrong “We’ve accomplished a lot over the past five instead of what could go wrong, but that’s what years,” said Rich Harbison, production manager. we need to do,” Ross said. “Achieving ZERO can “Our reorg of operations and the way operations only be done by performing each and every task does business was a huge turning point for us. safely, with no shortcuts.” Many were concerned about taking operators out As part of the refinery’s safety efforts, every of the field and into a centralized control room, Ferndale employee is asked to include a safety but what we found is that response communica- goal in their performance agreement. The think- tions has vastly improved because of the location ing behind the HSE goals was the potential sum in the same control room.” of all of the parts. “I’m particularly proud of the position we, as “If each person does his or her part, the sum a company, have taken to raise the bar for safety tends to be pretty good. When the goal is con- and reliability by implementing a large number nected to something meaningful, the sum tends of new required standards,” Technical Manager to be even better,” Biggs said. Dan Kier said. “These standards are being applied Another big part of the HSE team’s role has across all the ConocoPhillips refineries to improve been preparation for the March/April turnaround safety. The new design and operating require- of Ferndale Refinery. With more than 1,700 ments are set well above state and federal agen- contractors on-site for the 39-day shutdown, the cies’ expectations and accepted industry practice. onboarding of every contract organization to the Ferndale is making good progress on implement- ing these standards, and the benefits in safety and reliability are seen every day.” Above: Production Manager Rich Customer service Harbison The same sentiment holds true when it comes to Top: Technical health, safety and environmental (HSE) stan- Manager Dan Kier dards at Ferndale. In fact, the HSE leaders see Far right: Safety their job as customer service – making sure each Superintendent Josh customer (employee) leaves the facility each day Ross safe and sound. “Our HSE culture has been through a renewal of sorts as well. From procedures, practices and

30 ConocoPhillips Ferndale Refinery

A view of the Polar Resolution as it maneuvers through Puget Sound

Operations Coordinator Working together, separately Jay Pederson ConocoPhillips’ Polar Tanker organization and the future Phillips 66 Ferndale Refinery are committed to ongoing partnership after restructuring.

he ConocoPhillips Polar Tanker organiza- five tankers were brought Ttion calls Ferndale Refinery its home port. into service: Polar Endeav- It’s a perfect location of residence, centered our, Polar Resolution, Polar between both the Alaskan and Californian Discovery, Polar Adventure ports the Polar ships frequent. Now, as the and Polar Enterprise. The company’s announced repositioning becomes five vessels are completely finalized, the organizations will no longer be a double-hulled with fully part of the same company, as ConocoPhillips redundant operating and will retain the Polar Tanker organization and navigation systems and Phillips 66 will operate Ferndale Refinery. But twin engine rooms that are both organizations have committed to a long- individually capable of propel- standing relationship, regardless of the sign on ling the vessel at full capacity in the event that and the Polar organization will be a strategic the door. one engine loses power. These tankers, with customer of Ferndale Refinery and Phillips 66.” “Our marine terminal at Ferndale receives capacities of approximately 1 million barrels, A term contract is in place to ensure that crude oil from the Polar ships and handles out- are primarily used to transport feedstocks to the relationship continues, so that everyone going shipments of diesel, gasoline and fuel U.S. refineries, including Ferndale, Rodeo and benefits. oil,” Ferndale Refinery Manager Marjorie Hatter Los Angeles. “We’ve been a part of Downstream Trans- said. “We intend for this to remain the same, “ConocoPhillips will continue to sell Alaskan portation for the past several years, and it’s post-repositioning.” North Slope crude oil to Phillips 66, much like been a great group to be a part of,” said Chris The Polar Tanker organization manages the we do today,” said John Wright, president, Bulera, manager, Marine. “But we are excited marine transportation of Conoco­Phillips’ Alaska Global Supply. “Ferndale Refinery will continue to be part of the Global Marine organization in North Slope production. From 2001 to 2006, to be a strategic customer for ConocoPhillips, the future ConocoPhillips.”

spirit Magazine 31 Ferndale Refinery

ConocoPhillips­ safety culture is imperative. “I truly believe one of the reasons this area of “We have to ensure that each person working Washington state has maintained a healthy envi- on-site during the turnaround leaves bad habits ronment is largely due to our industry,” said Sandy at the front gate,” Ross said. “This is no easy Paris, environmental supervisor. “Conoco­Phillips task, but we find that when expectations are set has been a good steward of environmental service upfront, and when we, as a safety team, work to to this area. We have a vested interest because we critically assess each job, the result is positive.” live here, and many of us grew up here – 65 per- To prepare for the turnaround, much of the cent of the Ferndale workforce is local.” HSE work was done ahead of time, including The refinery has a lot of pride in being proac- extensive planning and preparation on everything tive on environmental issues rather than reactive from improving the permitting process to develop- to additional regulations. The facility was an early ing detailed transportation plans for getting people implementer of ultra-low-sulfur diesel, as well as and equipment safely from point A to point B. new standards on gasoline vapor pressure. “One of the things I like best about my job is that “Washington state is unique in the sensitiv- it’s never done; you’re always looking to improve ity of the environmental regulations and stan- things, find new risks, get better. When you do find dards,” Hatter said. “But what is also unique is Above: Turnaround new ways of keeping your colleagues safe, it makes the loyalty and dedication our local neighbors Manager Jeff the job so much more rewarding,” Ross said. have to the refinery. Generations of families have Feemster been associated with Ferndale Refinery in one Top left: A beautiful A healthy home way or another, so they are our biggest support- summer sunset in the Ferndale is making environmental strides. The ers whether it be writing letters to their elected Pacific Northwest refinery sits on the coast of one of the most officials in support of issues that will affect our Top right: Ferndale pristine areas of the United States. The stringent operations, or the elected official themselves com- employees and Washington state standards have changed over the ing to the refinery to hear what our employees families ride on the re- finery fire truck in the years, becoming more and more challenging, all have to say and what they are concerned about. Old Settlers parade. in an effort to protect the beautiful landscape. The people in this area recognize that this facility is a huge economic boost to the area – we have Right: Light Oils Shift Supervisor Patsy the highest-paying jobs and the most educated Williams workforce in the county.” The acute focus on protecting the environment at Ferndale is second nature, so to speak. “The state has a level of confidence in us that we are going to take care of our home in the right way. We take the necessary precautions to ensure the environment is protected. It’s just the way we do business,” Paris said. Paris has been in her role as environmental supervisor for more than 20 years, and although the work she does lacks instant gratification, she is excited about the future. “What I love most about my job is that I know I

32 ConocoPhillips Ferndale Refinery

“We take the necessary precautions to ensure the environment is protected. It’s just the way we do business.” – Sandy Paris

during the turnaround, coupled with all of the pre-turnaround work, ensure proper facilities, transportation and materials necessary for the work to be done. In turn, this brings a small eco- nomic boom to the local area. “We’ve been planning this turnaround for more than two years,” Feemster said. “In an effort to enhance safety, productivity and efficiency, we implemented a lot of changes and lessons learned, not only from past Ferndale experience, but also from other Conoco­Phillips refineries.” The team called in experts from around the vast Conoco­Phillips refinery network to offer their expertise on various units and turnaround activities. In some cases, retired ConocoPhillips employees return for special assignments. “Being am making a difference in this world that will live a smaller facility, we don’t always have that Above: Ferndale resource depth. It’s so nice to call on our sister Refinery Manager far beyond my years,” she said. “Everything I do Marjorie Hatter is focused on the long term. But I’ve seen it work, refineries and find who and what we need right at Far left: Business and that’s fulfilling.” our fingertips,” Feemster said. Team Leader Dale Some of the newly implemented practices Thanjan and Environ- 40 days and 40 nights (almost) include strategic placement of materials to increase mental Supervisor Sandy Paris For 39 days in March and April, Ferndale Refinery safety and productivity and decrease risk, a blast- was set to shut down all systems for a scheduled resistant shelter centrally located in the plant, and a refinery turnaround. The turnaround allows vast parking and transportation system throughout maintenance on all of the major units of the the Ferndale facility to get workers where they refinery and also gives refinery employees the need to be in an efficient and safe manner. opportunity to work outside of their normal “This turnaround needs to be safe and leak-free daily duties, as many employees take on different with a flawless startup,” Feemster said. “I believe roles during turnaround time. quality and safety go hand in hand, and based on “Since Ferndale is what we call a single-train our planning and preparation for this turnaround, refinery, we shut down the entire facility during I’m confident we will be successful. Our contrac- a turnaround. Some of the larger refineries can tors received guides on Conoco­Phillips policies, shut down different units at a time, but not here,” procedures and quality well ahead of the turn- said Jeff Feemster, turnaround manager. “Plan- around, with an effort to onboard every contractor ning, plotting, assessing risks, identifying resource before they step foot on the plant.” requirements and staffing – a lot of work has All of the employees know and understand the gone into making this a successful shutdown, complexity of a turnaround process, how impor- maintenance and startup operation.” tant it is to get everything right, and the risks and The local impact of the turnaround at Ferndale rewards associated with a project you do only is immense. More than 1,700 contractors on-site once every five years.

spirit Magazine 33 Ferndale Refinery

“The fear of the unknown is intimidating, but it also motivates you to do the absolute best you can.” – Shelby Muren

“We have one shot to fix everything we need to but they are charting unfamiliar territory. That’s until 2017,” Business Team Leader Dale Thanjan where our more experienced professionals can said. “The future of our facility depends on it.” step in and mentor, fill management roles, and help both generations learn from each other.” Fostering talent Process engineers Lauren Turner and Shelby The future of Ferndale is most certainly its peo- Muren are perfect examples of this reciprocal ple. “I think the different experience levels in our relationship. Turner filled Muren’s former role workforce at Ferndale is a really great thing,” Hat- in 2011, allowing for a shadowing opportunity to ter said. “Our younger generation is enthusiastic, learn the ropes.

Serving the local community art of being a good neighbor to the Fern- including data entry, proctors and grading. It’s able to have fun while getting to know each Pdale community is the refinery’s strong so much fun to see the kids so committed to other better and, in a lot of cases, make new commitment to serving the area in various math at young ages.” relationships with co-workers you never really philanthropic outreach programs. An added Projects like the math competitions give knew.” bonus is the fun. Ferndale employees the opportunity to serve Ferndale community-service projects “We support local and statewide math the community, while building camaraderie include the Relay for Life benefiting the competitions for middle- and high-school age with colleagues. American Cancer Society, the Jingle Bell Run kids,” said Brandi Civico, executive assistant. “It’s refreshing to see your co-workers benefiting the Arthritis Foundation, the Human “Our refinery volunteers serve in various roles, outside the refinery.” Civico said. “You’re Race, and the Junior Ski to Sea Relay.

Many employee volunteers at Ferndale serve the community through various math competitions for local youth. The competitions give students the opportunity to prove their math skills, while developing useful knowledge that may lead them to be refinery employees one day soon.

3834 ConocoPhillips Ferndale Refinery

industry hasn’t been an issue at Ferndale, which she attributes to mutual respect and a good sense of humor. “My team has such different personalities and all sorts of ages and backgrounds,” she said. “I remember my first day as a supervisor, when one employee came in and gave me all of his expecta- tions. As soon as he finished, I turned it around and told him my expectations of him as his super- visor. We haven’t had a miscommunication since.” Hatter, ConocoPhillips’­ only female refinery manager, agrees that it’s all in how you approach “Every day is a different project,” Turner said. “I matters. “Women have a different way of han- learn more every day. It’s when problems arise that dling things. Once your colleagues see you as an I’m able to turn to Shelby and get his perspective individual, then it works,” she said. on how he would handle things. Sometimes we brainstorm, sharing our ideas for a possible solu- The big picture tion, and end up coming up with an idea together.” When you ask Ferndale employees what they like “Everyone here is smart, and everyone has differ- most about their jobs, odds are the answers will ent experiences to call on. Sometimes a seemingly be, “The people I work with.” It was a common simple fix will cause a chain reaction of other theme throughout the refinery, in all roles from problems, many of which someone at the plant operations to HSE to administration. This cama- has run into before. Calling on our peers not only raderie makes the Ferndale workforce act as one teaches us better problem-solving skills, but can focused team, rather than a group of units. also save a lot of time and energy,” Muren said. “I started as a security contractor, so I saw every Overall, they agree it’s a balance of sorts. employee come in to work and leave for the day. “The fear of the unknown is intimidating, but I always noticed how happy everyone looked as it also motivates you to do the absolute best you they arrived at work, and rarely did anyone leave can,” Muren said. looking frustrated or upset. This was a place I For Patsy Williams, shift supervisor, Light Oils, wanted to be a part of,” Operator Quoc Dang said. the balancing act involves a management posi- The employees at Ferndale enjoy their colleagues, tion, shift work and two kids – not an easy task. love their home state and, most importantly, see Above: Operator Quoc Williams finds her motivation in being named the the big-picture view of the value each contributes. Dang first female shift supervisor in the history of Fern- “As I drive to and from work each day, I often Top: Process Engineer dale Refinery. Her life revolves around a family think about the cars driving on the streets with Lauren Turner calendar to keep track of the days – and nights. me and the homes I pass that are heated, keeping Top left: Process Engi- neer Shelby Muren “Surprisingly, the shift schedule, though com- families warm on cold days. It makes me proud plex, allows more time to attend my kids’ school to know that, in a way, I’m a part of that. It’s a functions and field trips during the weekdays,” service everyone benefits from. I’m proud to rec- Williams said. ognize what we offer as an industry that so many Her management position in a male-dominated take for granted,” Dang said. ■

spirit Magazine 35 ny company can claim to support

employee health and wellness, Abut it’s putting those words into action that really counts. At Conoco­Phillips, employees are

supported in a variety of ways in their efforts to

become active and improve their overall health.

36 ConocoPhillips health and Wellness

Paving the way to

wellnessby Kathryn Donelson

Making the case to remain with the company long term and fewer Employee well-being has always been a priority at illnesses requiring sick days. Participants in well- ConocoPhillips, and for good reason. “Support- ness programs are also more likely to recommend ing health and wellness throughout our company the company to a friend or family member – a key makes sense,” said Carin Knickel, vice president, indicator of engagement. Given that employee Human Resources. “Building a wellness culture engagement is widely recognized as a critical helps keep us safe, aligns well with our SPIRIT driver of success, both employees and companies values, helps contain costs – for employees and benefit when employees are encouraged and sup- the company – and ensures that our employees ported to stay well. can feel, work, play and live at their best.” The statistics echo that sentiment. A 2010 study A well-rounded approach by the World Economic Forum reveals an impres- As trends in work-site wellness continue to evolve, sive correlation between workplace wellness initia- so does ConocoPhillips’­ benefits programs. In Carin Knickel, vice president, Human tives and employee engagement. The study found recognition of a broad definition of wellness, Resources that employees are significantly more likely to be health-related information and resources are avail- engaged when wellness is a workplace priority. able through a multipronged approach. A similar study conducted by Maritz found that “A person’s overall health depends on much employees who participate in wellness programs more than just their physical health,” said Dr. have a particularly strong connection with their Paul Hodgins, chief medical officer. “There are companies. Among the study’s findings, these several dimensions to health – emotional, social, employees cited greater job satisfaction, a desire mental and others, in addition to the physical. It’s

spirit Magazine 37 Health and Wellness

“A person’s overall health depends on much more than just their physical health.” – Dr. Paul Hodgins

Far right: Randy Aus- important to include as many of those components tin, Health and Safety as possible when developing wellness programs.” team lead, chooses some healthy snacks Effective work-site wellness programs often after his 12-hour fast take advantage of the resources and features of and testing. a company-sponsored health and welfare pro- gram. At Conoco­Phillips, the benefits available to employees and their dependents offer various lev- els of financial protection in the event of illness. Although the medical benefits vary by option and location, most offer a selection of health-improve- ment programs to support employees in attaining their health-related goals. Another way ConocoPhillips­ supports workforce health is through Integrated Occupational Health Services, or IOHS, which meets the medical needs of employees around the globe with services such as locally run wellness programs, traveler health, flu vaccinations, and, in collaboration with HSE, emergency preparedness and health and safety risk mitigation. IOHS also covers critical needs, such as the Substance Abuse Prevention Program and the global Employee Assistance Program. Additionally, some ConocoPhillips­ locations offer an on-site wellness facility that provides

38 ConocoPhillips Health and Wellness

group fitness classes and personal trainers, as well respective locations. as seminars on nutrition, stress reduction and The team functions as a network, facilitating other wellness-related topics. Where such a facil- wellness strategies and identifying opportunities ity is absent, employees may have access to locally across Conoco­Phillips’ diverse cultures. “Due run health-related programs and activities. to our global makeup, we are able to learn what works in various areas,” said Jan Castelli, direc- Wellness goes global tor, Wellness-Fitness Services. “Some locations In early 2011, a global wellness team was estab- are similar and can leverage the same wellness lished at Conoco­Phillips to encourage health and programs, while modifications can be made to wellness; share success stories; and keep wellness accommodate another country’s culture.” fun, interesting and sustainable. This multifunc- Much of the program design has its founda- tional team is made up of members from various tion in actual employee data. Although results locations, business units and perspectives – some from individual screenings and other assessments with day-to-day wellness-related responsibili- are confidential, aggregate data can be used to ties and other Wellness Champions who share tailor programs and health-related initiatives that a passion to spread the wellness word in their serve a particular need. “If the data in one region

What’s the best path to wellness? While recognizing that awareness and taking action are good ways to structure a wellness program, we asked Dr. Hodgins, Jan Castelli and Juli Merciez to recommend one wellness initiative to employees. Here’s what they had to say:

Dr. Hodgins Juli “The single most “Alright, I accept important thing is what those. But don’t lose you eat.” sight of getting a baseline on biomet- rics. A balanced diet Jan and moderate exercise “Agreed. And when you are probably good for combine a balanced diet with moderate almost everyone, but getting the facts on exercise, you really your underlying health metrics and keep- are headed in the right ing score on an ongoing direction. We have basis is an excellent some great programs way of getting an for those who don’t early warning.” want to be gym rats – and for those who do!”

spirit Magazine 39 Health and Wellness

shows a preponderance of, say, high blood pres- Wellness website that provides employees with sure, we are able to build learning opportunities access to regional wellness-related content and focused on that topic,” Castelli said. “The data is contact information. critical in helping us customize our programs to The collaboration of this team has resulted in meet our regions’ unique needs.” When possible, a variety of successful health initiatives. At any the team leverages the expertise of its wellness given time around the globe, Conoco­Phillips

“We were encouraged to see employees motivated to learn more about their health.” – Rachelle Capps

partners, such as the Wellness Center or on-site employees can be found taking part in walking food provider, to coordinate and enhance its programs, running events, weight-loss challenges, Above: Employee programming. Lunch-and-Learns, biometric screenings, health Relations Advisor To facilitate the exchange of ideas and best fairs, ergonomic workplace assessments, healthy Rachelle Capps practices, this team created its own Network of cooking demonstrations, and more. “These pro- Below: An on-site Excellence (NoE). “The global Wellness NoE grams foster our employees’ desire to look out for diagnostics techni- keeps us connected. It’s a place for us to share each other’s health and well-being,” Hodgins said. cian preps Derrek successes and updates on programs and activities “In turn, we reap the rewards for ourselves, our Wiedeman, project engineer, for the under development or under way,” Castelli said. families and our company.” glucose test. In addition, the team worked to create a global Awareness: Step 1 toward improved health In 2011, U.S. Benefits introduced a new campaign aimed at raising employees’ awareness of their overall health. Called Know Your Numbers, this vol- untary and confidential program offered a Well- Being Assessment, as well as biometric screenings of cholesterol, blood pressure, blood sugar and body mass index (BMI) – key indicators of a per- son’s risk for developing serious health conditions, such as heart disease and diabetes. Many employees took advantage of on-site screenings provided by a third-party vendor, while others completed their screenings by way of their personal physicians or company regulatory exams. With a participation rate of 60 percent across the U.S., the program was deemed a huge success. “We were very pleased with the response. Over 11,000 U.S. employees chose to take the first critical step toward greater health awareness,” said Rachelle

40 ConocoPhillips Health and Wellness

Capps, advisor, Employee Relations, who led the beginning,” said Juli Merciez, senior health man- 2011 Know Your Numbers campaign. “We were agement advisor and leader of the 2012 Know Your encouraged to see employees motivated to learn Numbers campaign. “In 2012 and beyond, we’re more about their health.” encouraging employees to take control of their Similar programs were also offered globally. health and health care costs by taking action to While some countries leveraged the Know Your improve their health.” Numbers campaign, other regions either created To that end, resources are available to support or maintained their own biometric screening employees in their quest for wellness. In the U.S., programs. Overall, participation aligned with that those resources are packaged under the umbrella of the U.S., with more than 60 percent of global of Your Life Choices, a comprehensive set of health employees gaining this type of valuable insight improvement programs and services – all of into their personal health. which are voluntary, confidential and offered at no “It’s important to have your health screenings,” cost to employees. Hodgins said. “About 50 percent of the diseases “In the U.S., we have made a very concerted U.S. Benefits COE that can kill us or make us chronically ill are pre- effort to provide resources to employees who truly Manager Lynn Tramel ventable. Heart disease and diabetes, which cause desire to tackle their individual health concerns,” millions of deaths each year, are often prevent- Tramel said. “Many of our employees are moti- able. These screenings can also detect certain vated by their biometric results, and we want to be types of cancer in the early stages when it’s highly sure they have the resources they need when they treatable. The result is lives saved.” are ready to take action to improve their health.” In 2012, many employees will again have the As with the U.S., many locations globally have opportunity to know their numbers. Biometric been successful in implementing local programs screenings will be available, with one exciting as a follow-up to their health screenings. In the addition in the U.S. “This year, we are piloting U.K., Malaysia, China, Singapore and Canada, a coaching service to enhance the effectiveness for example, employees have taken advantage of of the screenings,” said Lynn Tramel, manager, programs focused on nutrition, physical activity, U.S. Benefits COE. “In specific locations, certi- smoking cessation and mental health. fied health care providers will be available on-site to help employees understand their individual Leadership support – critical biometric screening results in real time. We’re to success hopeful employees will respond favorably, and we When it comes to creating a culture of wellness, can expect to expand the service to other loca- one thing is clear: Leadership support is critical tions in 2013.” to success. “When leaders get personally involved in a particular campaign or even simply voice Turning numbers into action support for the cause, we see stronger employee As the saying goes, it’s not what you know, participation,” Castelli said. “We are fortunate it’s what you do with what you know. And at to have many Wellness Champions across the Conoco­Phillips, employees have the tools they company. It’s an evolving process, but we’re need to take action. pleased with the reception by our leadership and “The biometric screenings give employ- the recognition of the importance of supporting a ees important health data, but that’s just the healthy, thriving workforce.” ■

spirit Magazine 41 Health and Wellness

Five ConocoPhillips­ employees share How they did it their personal journeys to wellness

Katherine Springall Center Champion, advocating health and Calgary, Canada wellness to my peers. How I got started How I stayed with it I joined ConocoPhillips­ in 2006, overweight My wife, Janet, is my best friend and a and out of shape. I knew I had to make strong supporter. My kids are also great changes. In 2009, I actually started doing motivators – they are so full of life and something to take control of my health. energy and challenge me to do better. Also, I take full advantage of the knowledge and How I did it skills of the Houston Wellness Center staff. I started out with Weight Watchers meet- What also helped was thinking about what ings and eventually signed on for Weight I wanted to accomplish and writing down Watchers at Work. I paid for the weekly specific, realistic goals; taking it one small on-site meetings with my Personal Devel- step at a time; and giving myself rewards opment Account, or PDA (benefit exclusive along the way to stay motivated. to Canada). I added exercise the following year by joining a gym and working out with a personal trainer twice a week, also Jisha Varughese Doha, Qatar paid for with my PDA. At the gym, I started gaining confidence and using the elliptical How I got started machine. The Know Your Numbers campaign, sup- ported by the Qatar Wellness Team, was the starting point to my healthier lifestyle. I had in 2:13. I love running now! I run every day high cholesterol and BMI, primarily from bad and am planning to participate in CPC Runs eating habits, not enough exercise and fam- and Walks again in 2012. ily history. The program helped me realize With hard work and support, I have lost the future impacts of my unhealthy lifestyle over 100 pounds. and the need to begin a healthy makeover before it was too late. Brian Blowers Houston, Texas How I did it I began hour-long workouts at the gym three How I got started days a week. I simultaneously changed my I kicked the smoking habit, started walking, eating habits by exchanging fried food for and bought a treadmill and some small grilled, reducing rice to twice a week, eating weights for the house. After a while, I took more fruits and vegetables, not skipping the plunge and ventured into the Wellness breakfast, and incorporating healthier lunch Center. Best move I ever made! and snack options. I lost nearly 10 kilos How I did it By participating in Know Your Numbers, I learned about HDL/LDL, total cholesterol and body mass index (BMI). I also learned the role stress plays in your health. I work out at the Wellness Center and have participated in Polar BodyAge® fit- How I stayed with it ness assessments; fitness classes; and When the Conoco­Phillips Canada CPC programs such as the Lean Team Chal- Runs and Walks program for 2011 was lenge, Poker Walk and Nutrition Programs. I announced, I decided to give running a try joined the ConocoPhillips­ Running Club and and signed up to train for a half marathon. Biking Club and have participated in the That was the first time I had run since Conoco­Phillips Rodeo Run, the Chevron grade 9 gym class! I ran my first half Houston Half Marathon and the BP MS marathon in Calgary in May 2011, finishing 150 bike ride. I proudly serve as a Wellness

3842 ConocoPhillips Health and Wellness

(22 pounds) in about eight months and How I did it swelling so bad my shoes didn’t fit – reduced my total cholesterol by a third. The opportunity to participate in Know Your all conditions tied to my weight. After The various initiatives promoted by our BU Numbers came at the right time. From the having the baby and trying a miserable Wellness Team also supported my journey biometric screening, I learned that if I wanted crash diet, I knew I would have to make to better fitness. I took advantage of the cor- to have a long, active life, I needed to make lifelong, sustainable changes that fit the porate membership at a local fitness facility, lifestyle changes now. I was heading down lifestyle of a working mom who travels healthy snacks and fruits in the workplace, the road to a heart attack or a stroke. My and eats out. I found Weight Watchers Lunch-and-Learn sessions, Wellness Work- blood pressure was borderline high, and easy to follow and dropped 19 pounds shops, the Qatar Wellness website, links to my cholesterol was significantly higher than in the first month! Conoco­Phillips Global Wellness, and Art of normal range. How I did it Abundant Living, to name a few. How I stayed with it I started working out with a personal How I stayed with it I was motivated by what the doctors told me trainer in the Wellness Center. He I truly believe that a personal commitment and my goal of retiring in the Rockies. I want showed me several exercises to do to health and wellness, combined with the to live in the mountains; I don’t want to just in the gym and while traveling. I take sit on the porch and look at the mountains. advantage of the lunch-hour workout My wife, Cathy, also took on the role of diet classes. My favorites are Women and police! Weights, Kettlebell, and Spin. I stuck with exercise and diet – just being How I stayed with it smarter about what I eat and putting in a Asking my husband to join me has little sweat equity. When I first started at the opened up a new world to us. We both gym, I was amazed at how out of shape I weigh less now than we did in high was. Getting old and soft kind of snuck up school! We have more energy and love on me. I also saw my doctor. I was able the way we feel and look. to get my numbers down with diet and I plan all my meals around Weight exercise, but I have to take medication for Watchers points and always plan the my cholesterol. With my family history and day before so I know how many points the numbers I had, it seemed like the smart I use the next day. My friends think I thing to do. am crazy, but I have started to plan out dinner meals four weeks at a time – a Jaime Conway big timesaver. Bartlesville, Okla. As of January, after one year How I got started on Weight Watchers, I have lost 68 pounds, and my husband has lost I was at my heaviest weight when I became 60 pounds. pregnant. I had high blood pressure, carpal tunnel, shortness of breath, fatigue and

company’s support, definitely makes the “mission impossible” seem possible for employees. Because of the changes I have made, my work-life balance has improved, and I feel fitter and more productive. For 2012, I have committed to further- ing my personal and family health and fitness goals.

Paul Davis Ponca City, Okla. How I got started I knew I needed to start getting back in shape and had begun going to the gym in preparation for a week-long backpack- ing trip in Colorado. Before After

spirit Magazine 43 global marketing

Global Marketing: To 2015 and

beyond!by Nellie Betzen, photography by Garth Hannum and others

ears ago, mention of 2015 evoked images of a science-fiction movie with peculiar-looking space robots and fast-flying cars. Now, only three years down the road, the year will be here before we know it, Yand Global Marketing is prepared to be better than ever in 2015. In October 2010, Global Marketing leaders met “Although we operate as separate, individual in Houston with a few key objectives in mind, business units, we have much more in common including how to define the group, where the than each of us ever realized,” said Andy Viens, business should be in 2015, and what culture and president, Global Marketing. “We identified action items were needed to get there. common practices and issues, and as a result, this group of leaders truly feels like a Global Market- Right: Andy Viens, ing team rather than a group of individual busi- president, Global ness unit managers.” Marketing The group realized there were sizeable opportunities to elevate individual business performance by leveraging best practices and knowledge of the collective Global Marketing organization. The 5 by 15 initiative was born, an aggressive goal to improve earnings by $150 mil- lion over five years. The group is targeting earn- ings of $500 million in 2015. Along with 5 by 15, Global Marketing is striving to be three things: a high-performance marketing organization, a learning organization and a world- class sales organization.

44 ConocoPhillips Carla Hernandez works at the Yorba Linda, Calif., 76 store.

The will to be a learning organization is best diesel fuel and heating oil; manage major fuel represented by the formation of Functional Excel- supply agreements; and administer brand-licens- lence Teams (FETs), where business units work ing programs. Its customers include major truck together to share best practices and solve prob- stop operators, independent branded retailers, lems across multiple platforms. You’ll learn more high-volume retailers, national resellers and heat- about the FETs later, but first, it is important to ing oil suppliers. understand the businesses that make up Global Each of the three U.S. fuel brands stands for Marketing, their individual strengths and how something unique and has a long, rich heritage they operate. with a loyal customer base. The 76 brand’s mis- sion and tagline are “We’re on the driver’s side.” U.S. Fuels Phillips 66 is branded as the “Experts in gas since With the main goal of offloading product from 1927,” and Conoco reminds consumers to fuel up its refineries, U.S. Fuels operates under three at Conoco every time “Because your car knows.” business models: branded wholesale, reseller The business uses an innovative digital advertis- and unbranded. Branded wholesale consists of ing approach, with each brand having its own independent, licensed operators, called marketers, interactive website to correspond with regional

Each of the three U.S. fuel brands stands for something unique and has a long, rich heritage with a loyal customer base. who conduct sales under the Phillips 66, Conoco television, radio, and out-of-home and in-station and 76 trademarks. In the U.S., Conoco­Phillips’ advertisements. Sponsorships of professional and branded network consists of approximately college sports are also used to build consumer 7,300 outlets. Resellers are customers who own affinity and loyalty. For example, 76 sponsors and operate outlets under a branded supply the PAC 12 college athletics conference and Los agreement. They are different from wholesale Angeles Dodgers; Conoco sponsors the Mountain in pricing methodology and contract structure. West Conference; and Phillips 66 sponsors the Big Unbranded’s role is to market unbranded gasoline, XII Conference, St. Louis Cardinals, and Kansas

spirit Magazine 45 Global Marketing

A major point of differentiation for U.S. Fuels is its unbeatable customer service.

City American Parade and Rodeo. These sponsor- is working on matching sales force capacity with ships correspond to the regions where each brand territory potential, and on the branded sales chan- is most popular. See the map below for a break- nel side, projects are under way to determine the down of market share across the U.S. optimal sales force structure and to increase the U.S. Fuels also operates an aviation fuel busi- time sales reps have with customers. ness with an 80-year history, which is one of the A major point of differentiation for U.S. Fuels major suppliers of jet fuels and avgas to general, is its unbeatable customer service. A 2010 Gelb commercial and military aviation. It is bolstered Survey, which measures customers’ thoughts on a by an extensive distribution network of more variety of issues, showed Conoco­Phillips’ cus- than 700 fixed-base operators coast to coast. tomer service levels to be at unprecedented levels Currently, U.S. Fuels is implementing several and significantly better than the competition. The sales force effectiveness improvement projects, survey mentioned specifically that Conoco­Phillips which tie into Global Marketing’s larger goal of excels in these areas: sales personnel, customer becoming a world-class sales organization. On the service personnel and product supply. West Coast, it’s conducting a world-class sales pro- “These scores indicate that we are achieving our cess aligned with the buyer’s branding process that vision to attain a level of service excellence that will increase average deal volume and improve drives customers to prefer Conoco­Phillips over deal closure rate. For the unbranded business, it all other suppliers, which is a true competitive

U.S. MARKETING AND TRANSPORTATION as of March 2012

0 500 Alaska Miles

Bering Polar Sea Tankers

Paci c Ocean

Hawaii Atlantic Ocean Paci c Ocean

0 100

Miles Gulf of Mexico 0 200 Miles

Market Share1 Terminals 2 Products Pipeline NGL Pipeline Crude Oil Pipeline Rockies Express Pipeline >20% 10-20% 5-10% <5%

46 ConocoPhillips Global Marketing

Phillips 66 awards three Local Legends with gas for a year

ringing customers the best in performance The five grand prize winning videos 4. David Werth (Albuquerque, N.M.) Bgasoline, Phillips 66 hosted a contest in 2011 can be viewed at phillips66.com: “Inverted Tail Grab” to find topics on which its loyal customers are 1. Chris Dryden (Hannibal, Mo.) 5. John Hagerty (Kirkwood, Mo.) experts and name them as official Local Legends. “Phillips 66 Pool Trick Shots” “Phillips 66 Marshmallow Tricks” To personally connect with its fans, the brand 2. Ken Danley (Amarillo, Texas) The purpose of the campaign was to re- encouraged patrons in Illinois, Kansas, Missouri, “Hands on the Wheel Harmonica energize the Phillips 66 brand with a younger New Mexico and Texas to submit personal videos Man” audience, build affinity for the brand, and of their special talents for a chance to win weekly, 3. Richard Dinkela (St. Peters, Mo.) educate and inform consumers of how monthly, sweepstakes and grand prizes. The suc- “Route 66 Rich” Phillips 66 is the expert in gas. cessful seven-month campaign motivated more than 200 consumers to submit videos of their exceptional skills, with the top three grand prize winners receiving Phillips 66 gas for a year. “The Phillips 66 brand is passionate about two things – the performance gasoline we produce and the people in the places where we do busi- ness,” said Tami Walker, manager, U.S. Fuels Brand Management. “The Local Legends contest was a fun and different way for us to engage with our consumer patrons, and we look forward to finding more Local Legends in the future.”

advantage,” Viens said. “This success has been Conoco®, Phillips 66® and Kendall® Motor Oil. Above left: U.S. Fuels achieved through a significant multiyear effort to The company operates the Excel Paralubes Brand Management Manager Tami Walker improve and upgrade every part of our service Group II base oil plant (a joint venture with Flint Above right: (from left) offering.” Hills), as well as five proprietary U.S. finished Associate Promotions lubricant blending facilities. The business also has Director Kimberly Lubricants a world-class research, development and technical Dunman, Store Man- ager Tom Morelli, The business starts with the refining of petroleum services facility in Ponca City, Okla. Grand Prize Winner feedstocks, called vacuum gas oils, which are con- ConocoPhillips­ lubricants are sold in all 50 Chris Dryden and Lo- verted into base oils. Base oils are then blended U.S. states and in over 50 countries. Finished cal Radio Personality with a variety of additives into a multitude of lubricants sales are made through two primary Rick Wallace at the Local Legends winner finished lubricant products at blending facilities channels – on a direct basis to large customers celebration. across the country. The business produces literally and through branded marketers. Direct sales thousands of stock keeping units (SKUs), from account for about 50 percent of the total volume motor, hydraulic and gas engine oils to automatic sold and include such companies as John Deere, transmission fluids and greases. Firestone, Peabody Coal and Ford Motor Com- In North America, Conoco­Phillips holds about pany, with business relationships going back more a 7 percent market share and is the third-largest than 35 years. The other half of finished product branded lubricants marketer, offering consumers sales are made to about 425 branded marketers four premier brands, including 76® Lubricants, who, in turn, sell the company’s branded products

spirit Magazine 47 Global Marketing

JET Germany launches new DU HAST DIE WAHL! price alert campaign PREISALARM AUF JET-TANKSTELLEN.DE

ET has now made the search for more The new website and price alert campaign Jaffordable fuel even easier for its custom- are further components of digital strategy at ers. Those who register on the new JET JET, which began with QR codes at all JET website can determine a price limit and receive petrol stations that allow JET customers a price alert for the desired fuel type at their to post the latest fuel prices at the sta- preferred petrol station. As soon as the price tions on their own Facebook pages via their limit has been achieved, the customer receives smartphones. a message via email. Around 800,000 people per month visit The new website, www.jet-tankstellen. the JET website, which features characters de, has been optimized for easy access via developed by the famous German cartoonist Direkt zum Preisalarm: mobile devices, such as smartphones and Brosel. Al Alarmo is the character for the price tablet PCs. It enables price-conscious drivers alert campaign (see advertisement at right), to learn about JET locations and latest prices but several more characters exist to promote while on the road. At the same time, JET now the JET brand. You can learn more about them offers JET KLICKe. It gives customers the on JET’s website.

Jet_Alarmo_210x297_39L.indd 1 11.01.12 11:29 opportunity to become part of a community ad.quarter Jet Anzeige Motiv Alarmo Format 210 x 297 + 5 mm A4-Beileger and take advantage of practical services centered around the car, including the price alert and calendar function for the next inspec- tion appointment and oil change. In this online community, which resembles a social media site such as Facebook, members can add friends, post pictures of their cars and interact with one another. “KLICKe now has 8,000 members and counting, which is more than we anticipated,” said Nikolai Lassen, team lead, Brand Strategy and Communication. “Every day, new mem- bers are joining, and that shows us that there is a need and a special attractiveness for this promotion.”

Above: (from left) Re- to their customers, such as locally owned fleets, trade journals, sales aids and relatively inexpen- gional Manager Oliver construction companies, quick lubes and automo- sive Internet videos. One such video features a Reichert, Brand Devel- opment Senior Advi- tive repair shops. man from Shreveport, La., who runs a delivery sor Bettina Schmidt, Lubricants’ success depends on a four-dimen- business using his own car, a 2007 Toyota Corolla. Brand Strategy and sional strategy – operational excellence, easiest to After several years, his car now has well over Communication Team do business with, optimization of the value chain 500,000 miles and counting, all driven on Kendall Lead Nikolai Lassen and Site Operator and strict cost control. These four strategic ele- Motor Oil. The video was posted on Kendall’s Jürgen Haack inspect ments have been integral to the business since the YouTube channel and has already received thou- marketing literature merger of Conoco­Phillips. For instance, the busi- sands of hits and made millions of impressions. about smart saving with JET at a service ness has managed to hold its operating costs flat With regard to creating value, the Lubricants station in Deelböge, in an absolute sense from Day One of the merger. team works on building meaningful perfor- Hamburg. Unlike other lubricants suppliers, Conoco­Phillips mance benefits into its product line. Just last year, has elected to avoid expensive mass media adver- Lubricants developed a unique wireline lubricant tising and has chosen instead to generate brand that is used in the natural gas and oil production awareness by targeting specific customers through industries. The wireline oil seals and facilitates the

48 ConocoPhillips Global Marketing

“Working to build the business with these competitive advantages with the help of our experienced and dedicated staff has helped us succeed beyond our expectations.” – Loretta Koster

transport of equipment up and down the well- Conoco­Phillips markets its polypropylene under bore, making the process more efficient, clean the COPYLENE™ brand name, selling directly to and environmentally friendly than other alterna- converters and also via resellers and distributors. tives. With hydraulic fracturing of natural-gas- The converters take the COPYLENE™ prod- bearing formations increasingly utilized across uct and convert it to plastic parts that are then the country, the market potential of this premium sold to customers who use these parts in their product is sizeable. manufacturing and sales process. As an example, “When you look at the entire value chain for COPYLENE™ product is sold to a manufacturer the business, starting at base oil production and of food containers, who then sells the finished supply through the plant operations and logis- containers to your neighborhood takeout restau- tics, product and brand management, and the rant. The reseller and distributor customers buy sales team, you quickly appreciate this is a fairly polypropylene from Conoco­Phillips and resell to complex business,” said Gary Balzhiser, manager, smaller customers with whom ConocoPhillips Commercial Lubricants. “It doesn’t get any easier does not have direct relationships. when you consider the flat projection for future The polypropylene business markets its prod- lubricant demand. But we intend to continue ucts through trade shows and customer packs, growing the size and profitability of the business which are used by the sales and technical services through outstanding teamwork and communi- teams to attract potential customers. It also lever- cation, anticipating trends and developments, ages relationships with business partners, such and staying focused on our four established and as additive suppliers, to help access the market proven strategy principles.” and promote the COPYLENE™ brand, which was established at the beginning of 2010 when Polypropylene ConocoPhillips­ took over marketing the product Propylene and ethylene are products produced from an external company. from processing crude oil in a refinery and are “In the past two years, we’ve really worked to the building blocks for polypropylene. The poly- promote our COPYLENE™ brand name,” said propylene plant is a way to upgrade the value Loretta Koster, manager, Global Specialty Petro- of propylene in comparison to using it as fuel. leum Coke and Polypropylene. “Having our plant Conoco­Phillips’ polypropylene plant at Bayway located in the Northeast puts us in a favorable Refinery in Linden, N.J., not only upgrades the position as far as weather and in close proximity Above: Gary Balzhiser, manager, Commercial value of the propylene produced, it also increases to our customers, and we have supply consistency Lubricants capacity to process crude oil and other petro- through being connected to Bayway Refinery. Top: Loretta Koster, leum feedstocks. Working to build the business with these competi- manager, Global Spe- Polypropylene can be found in everyday plastic tive advantages with the help of our experienced cialty Petroleum Coke products, such as food packaging or medical sup- and dedicated staff has helped us succeed beyond and Polypropylene plies. You can tell a plastic container is made from our expectations.” polypropylene if you see the number five on the bottom. The polypropylene market is large and Global Specialty Petroleum Coke complex, with annual demand of nearly 20 billion The Global Specialty Petroleum Coke business pounds and hundreds of products that differ in covers a wide range of products, from a highly their qualities and production requirements. specialized product purposely produced for the

spirit Magazine 49 Global Marketing

“Our mission is to be the supplier of choice within our customer segments well into the future.” – Stefan Wulkan

Stefan Wulkan, “Our challenge, moving forward, is to not take manager, UKIM our leadership position for granted,” Koster said. “We’ve worked hard to get where we are, with a world-class team of sales and technical support, as well as dedication from the refineries to produce the product our customers need. We work hard to continue serving as the supplier of choice, such as by delivering improvements in quality or increases in production of products in short supply. I see a bright future as we move forward into Phillips 66.”

United Kingdom and Ireland Marketing The U.K. and Ireland Marketing (UKIM) busi- ness has achieved significant success over the steel industry to coke that is a byproduct of the last 10 years with a mantra of “Customer focus, refining process. cost leadership and HSE excellence.” UKIM is a Needle coke, the most sophisticated of the wholesaler of industrial, heating and transport petroleum cokes, was first produced in Conoco’s fuels and profitably finds inland markets for the Ponca City Refinery in the early 1950s. This prod- bulk of Conoco­Phillips’ Humber and Whitegate uct is used to make an electrode that is essential to refineries’ clean fuels distillate production and the process of recycling steel. Although Ponca City a significant portion of its gasoline production. no longer makes needle coke, it’s produced at the Customers range from single-station owners Lake Charles and Humber refineries, and Conoco­ to large national fuel distributors, often serving Phillips is the leading supplier of this product to multiple market segments (marine barge, LPG, electrode manufacturers around the world. aviation, heating oils and transport fuels). Prod- The aluminum industry needs a special prod- ucts are predominantly sold unbranded and on uct, anode coke, for processing ore into alumi- a collect basis. Branded sales are to JET branded, num. Humber, Alliance and Ponca City are the independently owned fuel distributors and JET main locations that produce it, with Humber and branded dealer-owned retail outlets. Alliance making top-quality anode coke. Last year, the business completed a strategic Unlike other key markets, the specialty coke study of its markets and potential and, as a result, market is fairly small, with only 100-200 custom- is currently shifting from the traditional wholesale ers. Given the specialization, long history and focus to a national and regional sales organiza- market leadership, the business has decided to tion reflecting the business focus of its customer not advertise or brand its products. Instead, it base. The new structure includes increased sales focuses on strong relationships with its refineries support to improve customer face time and addi- to ensure the product meets high standards and tional resources to allow for sales development on its relationships with customers to ensure an and strengthened inventory management. understanding of their business and that their “With this change, we began a journey toward needs are being met. sales and operational excellence and being a truly

50 ConocoPhillips Global Marketing

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JET'S ‘20 IS P LE Jet’s ‘20 is Plenty’ • N T Y N ’ G C I A

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opportunity- and solutions-driven focus throughout the Left: A local advertise- organization,” said Stefan Wulkan, UKIM business, from ment promotes JET’s 20 is Plenty road safety manager, UKIM. “Our mission is head-office employees campaign. to be the supplier of choice within to the contractors who Below: North Ox- our customer segments well into Help make our roads safer for children deliver fuels to the fordshire Member of the future. We are moving away – sign our pledge to slow down to service stations. In fact, Parliament Tony Baldry 20mph or below in our community. from generalist to specialist func- in September 2011, the (left) receives 390 sig- natures of local drivers tions, allowing people to focus business celebrated who pledged to drive and become really great at what 10 years without an at or below 20 mph in they do. Through this change, a employee recordable inci- built up areas as part of JET’s recent 20 is number of people have moved into new positions, dent, which sets the bar even higher for the future. Plenty road safety new leaders have emerged, and there is clearly an Using its network of 330 JET branded sites, UKIM campaign, from Elliot excitement about the future.” also works to promote safety in the community Fairbrother (right), manager of JET’s An- In addition to the increased market alignment, through a number of retail-focused campaigns. telope Garage in Ban- HSE (health, safety In the summer of 2011, JET launched its 20 is bury. Pupils from The and environ- Plenty campaign and teamed up with BRAKE, a Grange County Primary mental) con- U.K. road-safety charity that works to decrease School in Banbury are present to support the tinues to be a the number of pedestrian road accidents. The initiative. simple message was aimed at encouraging motorists to slow down to prevent the growing number of pedestrians, especially children, who

spirit Magazine 51 Global Marketing

“I know we will be able to successfully deal with the market changes that we face.” – Barry Quinn

are injured on U.K. roads every year. Part of this and the business unit is focused on growing the campaign gave customers the opportunity to sign JET network, upgrading the existing retail net- an in-store pledge to reduce their speed, and more work through disposals and high-quality replace- than 14,000 signatures were received. ments, and continuing to develop pricing analytics “UKIM is really proud of its HSE record and to improve margin and maintain volume. our ability to maintain quality products and dedi- “With our dedication to innovation, our cated customer service, while still keeping safety increased level of knowledge sharing and collabo- and operational excellence at the forefront,” ration through the Functional Excellence Teams, Wulkan said. and the power of our people, I know we will be able to successfully deal with the market changes Continental Business Unit that we face,” said Barry Quinn, general manager, “Individually strong, together unbeatable” is the Continental Europe. “JET will continue to be a slogan developed by Conoco­Phillips Germany in leader in the industry.” 2008 after a careful evaluation of the operations’ vision and values. The business unit is living that Functional Excellence Teams slogan today, and the meaning behind it helped Now that each individual business has been spur the need for increased knowledge sharing explained, it is easier to understand how they are and collaboration among the whole Global Mar- working together to achieve the common goal keting organization. of 5 by 15. Shortly after this aggressive goal was Conoco­Phillips Germany, headquartered in announced, seven FETs were formed. These cross- Hamburg, is known for its JET brand supported functional teams include Pricing, Customer Service, by an 18.75 percent interest in MiRO Refinery, Sales, Data Management, Supply Chain Manage- from which it receives a big share of its fuel ment, Brand Marketing, and People and Culture. supply. MiRO is the largest and one of the most “I’m a big believer in this system,” Quinn modern German facilities of its kind. Having a said. “Conversations are happening that probably supplier like MiRO puts Conoco­Phillips at a stra- wouldn’t have happened without the formation of tegic advantage in the sale and distribution of JET these FETs. The knowledge sharing is really turn- branded fuels and plays a significant role in sup- ing ideas into action items, and I think everyone porting the company’s 10 percent market share. within the organization can see the value in this.” The customers of JET feel a strong connection Although the FET initiative is just a year old, to the brand, much like the emotional connec- the organization has already seen extremely tion they feel toward their own cars. Part of what valuable results. For example, the Supply Chain makes this connection between the brand and the Management FET, which includes members from Above: Barry Quinn, customers so strong is that the 550 JET stations outside of Marketing, including a co-team lead general manager, Conti- nental Europe belong to Conoco­Phillips and are individually, yet from Commercial, carried out several projects in Top: Tony Reddington, consistently, run by self-employed station opera- 2011 that resulted in several million dollars of cost marketing manager, tors. Customers stop at JET stations not only for savings. One such project focused on contracts Finance the fuel, but for grocery items, a car wash or a with additive suppliers. Through the knowledge- snack from the bakery. sharing capability of the FET concept, the Supply JET Germany has several competitive advan- Chain Management team was able to recognize tages, including a high degree of customer loyalty, that the vendor used to supply additives in North

3852 ConocoPhillips Global Marketing

America was the same vendor the European Mar- keting group used for its additives. “We put a similar contract together for Europe, based on commodity indexes used in the manu- facturing of the fuel additives we buy, then, on top Jay Hong, manager, Base Oils and Specialty of that, negotiated a global purchasing discount,” Products said Jay Hong, manager, Base Oils and Specialty Products, and team co-lead for the Supply Chain Management FET. “This project was our first suc- cess and proved how quickly one good idea could be leveraged in another of our businesses.” This project, and several others carried out by the Supply Chain Management FET, earned it one “The core members have of Global Marketing’s STAR Awards in 2011. done a great job of pulling “One of the reasons for the recognition is that in the right resources to get our project teams work together very cohesively,” Hong said. “The core members have done a great the job done.” – Jay Hong job of pulling in the right resources to get the job done. In order for the FET concept to work, “These FETs will make certain we have a network you need team members who are invested in the of expertise in specific key areas, which, in the success of their projects, and you need projects short-term, will ensure the provision of insightful completed early on to demonstrate that the FET financial information in an efficient manner and concept works. The additive contract negotiation build bench strength of expertise that can sustain was our first big win, and that really gave people that in the future,” Reddington said. motivation to work hard.” An example of how the FET concept is really Moving forward to Phillips 66 catching on is the addition of Finance FETs in the As the company continues its plans to reposi- fall of 2011. tion into two leading energy companies, Global “As Marketing has developed as a global organi- Marketing also marches on with its focused com- zation, it has become clear that within Marketing mitment of achieving its 5 by 15 goal. As part of Finance, we have several areas where we have an integrated downstream company, the Market- issues, challenges and processes that are common ing business of Phillips 66 is ready to shine. The to all locations,” said Tony Reddington, marketing collaborative work being done now will carry the manager, Finance. “Clearly, the goal of becoming organization through repositioning and into the a learning organization, sharing and implement- future to help achieve the Phillips 66 objective, ing best practices, is as relevant for Finance as for which is to win in the marketplace. the rest of the business.” “Our global organization couldn’t have a better Two Finance FETs have been set up for now, opportunity than it does right now to shine,” focusing on reporting and economics. Two more Viens said. “Now is our time to really set the stage are slated to be launched later this year in the for what we want Global Marketing to look like, areas of credit and business governance. act like and perform like for the future.” ■

spirit Magazine 53 Faces of ConocoPhillips

54 ConocoPhillips Joachim Asmussen

May the wind always be at your back by Marion Oehlmann

Faces of ConocoPhillips

If you happen to be sail­ been to make a difference, and Nordic, as it was ing along the Baltic Sea his decisions have managed to do known at the time, this summer, keep your eyes this on a number of occasions,” until 2009. After this peeled because you just might said George Ober, manager, business was sold see Joachim Asmussen. The Strategy and Optimization in to Statoil, Joachim retail manager of Conoco­Phillips Houston. “The energy with returned to Ham- Germany, based in Hamburg and which he goes about his day burg. Because he responsible for the German JET is amazing. And his sense of spent so many years gas station business, is saying humor is too – a characteristic in Stockholm, the city goodbye after more than 33 years which I, as a Bavarian, do not had become Joachim’s with the company. In June, he’ll necessarily associate with dry second home, where be setting course with his 40-foot Northern Germans.” he, as a passionate yacht, the Tootega II. His route One decision, back in 1995, sailor, purchased his will take him to Sweden, the that Joachim played an essential first yacht. Baltic, Finland, Russia and then role in making was to bring the Ulrike, Joachim’s back to Sweden. carwash business in Germany wife, revealed why Before his voyage begins, it is back into company hands – now her husband finds sail- only fitting to take a brief look known as the successful brand ing so fascinating: “It’s back on his remarkable career. StarWash. not only the freedom Joachim started at Conoco in “Without his enthusiasm and and peacefulness, but Hamburg in 1979 as an analyst. effort in persuading the Board the challenge, more His tasks included the implemen- of Management and Sales, the than anything else, tation of probability studies for StarWash concept would never that he is constantly being faced Above: Finally with plenty of time for Retail in the area of Economics have been possible,” said Detlef with on the open sea.” his biggest passion, and Planning. It was a detailed Hitzwebel, team lead, Main- Challenges are also something Joachim sets sail and assignment, which continues tenance and Repair. “Joachim he willingly took on during his bids farewell. to influence him even today. It scored points during the negotia- career, much to the appreciation Opposite page: explains why Joachim is always tions with his analytical thought of those he worked for and with. Energy, straightfor­ wardness and lots of extremely well-informed before process, his straightforwardness “Joachim can take pride in the humor are the traits making a decision – without ever and, most of all, his direct way impact he has had on the organi- that helped Joachim losing sight of what’s important. of talking. He simply said what zations he has worked with and master virtually every challenge during his And he has had to make many he thought – and that was, more led,” said Barry Quinn, manag- three decades at decisions. His career has taken often than not, very convincing!” ing director, ConocoPhillips­ ConocoPhillips. him to various departments, Following further stops in Germany. “Heartfelt thanks go positions and countries, includ- Germany, Joachim and his family out to him, and best wishes for ing Conoco­Phillips’ headquarters were off to Stockholm in 2000. the future – on land and on the in Texas. It was here that he served as water. May the wind always be at “Joachim’s goal has always managing director for Conoco your back!”

spirit Magazine 55 Faces of ConocoPhillips

56 ConocoPhillips Cecil Galloway

To live to tell it by Mariana Cavin

Faces of ConocoPhillips

When the United States young family of five children – task. “I did every- entered World War II in late Brenda, Charlie, Carolyn, Betty thing, from mainte- 1941, the largest horse cavalry and Judy. nance to monitoring force in the nation could be “Phillips offered me a job that gages to supervis- found at Fort Bliss near El Paso, helped me learn valuable skills ing work crews,” Texas. Cecil W. Galloway, serving and gave me the opportunity to he said. Still, some with the 7th Cavalry Regiment, advance,” Cecil said. “Phillips of Cecil’s fondest was just 19 years old. At the onset cared about us, paid us well for memories come of the war, the War Department our work and provided scholar- from working on the determined that the 1st Cavalry ship opportunities for our chil- cat crackers, one of Division would give up their dren. We were a big family, and the most important horses after 20 years in service. the company showed us their refinery units where In 1943, the division was dis- appreciation when we worked heavy crude oil is mounted for overseas duty. The hard.” cracked, or frac- Above: Four genera­ era of the horse-mounted cavalry As a yard hand, Cecil per- tioned, into gasoline products. tions up close. Cecil had come to an end. formed manual labor at the Cecil could always be found with son, Charlie Galloway; grand­ The 1st Cavalry was sent to refinery, helping with any needed amid the action. He recalls daughter Jamie the Southwest Pacific where its Davis; and great men – Cecil Galloway included granddaughter Briar Davis. – served with distinction. Cecil served five years in the U.S. Left: After being awarded an honor­ Army, three of them overseas able discharge in in Africa and Italy as a sergeant 1945, Cecil Galloway major of the 91st Cavalry Recon- worked temporarily in Memphis, Texas. naissance Squadron, Mecha- Shortly after, he nized. Cecil supervised 800 started working at personnel, received six Bronze the Borger Refinery. Stars, the Good Conduct Medal Opposite page: Cecil and the American Defense Ser- Galloway at Conoco­ Phillips’ corporate vice Medal before being awarded campus in Houston an honorable discharge in 1945. proudly shows his Back in civilian life, Cecil mar- hard hat and the Phillips jacket that ried Dorothy E. Sweatt in 1947. he continues to wear Soon, he began working with today. Phillips Petroleum Company at the Borger Refinery. The job was a satisfying way to do something he enjoyed while supporting his

spirit Magazine 57 Faces of ConocoPhillips

To live to tell it (continued from previous page)

Cecil stands next to vividly the day he was stand- came crashing down. Luckily, his refinery. Seeing the hole made his 1960 Corvair 700 ing at the bottom of one of the safety gear was able to prevent a me appreciate the company’s Coupe, the car he drove to work. “I liked refinery’s crude oil fractionating head injury. safety requirements even more,” its sporty look, and it towers and heard a fast-moving “I remember, when the bolt Cecil said. During his 37 years got good gas mileage; bolt bouncing up and down from hit my helmet, feeling relieved with Phillips, Cecil received with the motor in the rear end, it also drove a height of at least 80 feet. Sure that I was required to wear a numerous awards for safe well in the snow.” On enough, Cecil’s hard hat was hard hat at all times at work. work-hours. the weekends, the penetrated when the falling bolt You can never be too safe in a Even though Cecil retired in large family rode in a station wagon.

58 ConocoPhillips Faces of ConocoPhillips

Left: Shaking hands with Refinery Superintendent R.D. White on the occasion of his 30-year ser­ vice anniversary with Phillips. As a stillman’s helper, Cecil reported to White.

1985, he remains very proud of legendary coach Tom Landry his service to the company and his during the Phillips union strike Phillips Petroleum memorabilia, in the late 1960s. Needless to say, including the Phillips jacket he Cecil is still a die-hard Cowboys continues to wear today. The hard football fan. hat, which served such a valu- After the death of his beloved able purpose the day the bolt fell, wife of 62 years, Cecil traded holds a special place in his heart. Texas Panhandle tornadoes Equally meaningful to him for hurricanes and moved to is being an Honorary Dallas Houston, where he enjoys Cowboy, a recognition that came venturing out with his family to to Cecil for the temporary work local eateries for shrimp dinners. he did next to Dallas Cowboys He’s adapted well to his new hometown and now roots for the Houston Texans. He also enjoys NASCAR and The History Channel. “Axe great-grandchildren. To remain Above: Cecil with long­ Men,” “Swamp People,” “Ameri- sharp and healthy, he says he time friend Lois Wallis at his 90th birthday can Pickers” and “Pawn Stars” keeps his weight where it should party. Lois’ husband, are just a few of his favorites. be, plays dominoes with friends Eugene Wallis, worked At age 90, Cecil continues and maintains a good sense of many years for Phillips as a welder before he to be a competitive dominoes humor: “I always like to kid passed away. player and only occasionally around with folks and see people lets his opponents win. He laughing, especially at my silly has 11 grandchildren and five pranks and jokes.”

spirit Magazine 59 Faces of ConocoPhillips

60 ConocoPhillips Shirley Stevens Coyner

Still soaring by Karen Sivils

Faces of ConocoPhillips

While working for Conoco­ to OBU to work as the school maneuver the plane into Phillips is not the only job nurse for a year before finally and out of the hanger. Shirley Stevens Coyner has ever returning to Bartlesville to work And she didn’t enjoy it had, you wouldn’t know it by for Phillips Petroleum Company as much without Her- her tenure. August will mark in the Medical Center where bert. “It wasn’t the same her 60th anniversary with the she administered injections and without him,” she said. company. A registered nurse in assisted the physician with exams Over the years, the Bartlesville, Okla., Medical and physicals. Shirley decreased her Center, Shirley knew at a very This decision would shape hours and is now a early age what profession would the rest of her life, because not part-time employee make her happy. “Back in grade long after her return, a friend working six hours school, I knew I wanted to be a invited Shirley to a dinner party per week providing nurse. I knew I didn’t want to to meet fellow Phillips employee basic medical services, be a teacher or a stenographer,” Herbert Coyner. Herbert became such as administering Shirley said of the professions her husband and, years later, her allergy injections, at the typical of young women at the inspiration to learn to pilot an Medical Center in the time. She came to the realization airplane. After earning his pilot’s basement of the Frank because when allowed to accom- license, Herbert enjoyed taking Phillips Tower Center. pany her parents to visit friends Shirley with him when he flew. But she says she will in the hospital, she was intrigued Perhaps spurred on by a return probably retire later this by what she saw and wished to home flight one night after dark year. As for what she understand the tools of healing. in which Herbert unintentionally will do after retirement, Above: Shirley’s small Though she wanted to attend flew into a flock of birds, causing she said, “It won’t be very much stature is empha­ college in Bartlesville to be the plane to fall dramatically, different. I’m very active in my sized in this news­ close to her parents, the local Shirley decided to earn her pilot’s church.” In the past, Shirley has paper clipping from junior college at the time didn’t license as well. She felt under- served as the Women’s Mission- early in her career when she had the offer nursing training. Intent on standing the pitch and roll of the ary Union director and a Sunday task of inoculating pursuing the only occupation she small, four-passenger Cessna 72 school teacher and has traveled the Phillips 66ers desired, three days before classes would make her more at ease in on numerous mission trips. basketball team for their Olympic trip to started, Shirley decided to attend the air. She was right. Of her zest After retirement, she intends to Australia. for flying, Shirley said, “During continue being involved in such Oklahoma Baptist University Opposite page: (OBU) in Shawnee, Okla. She my third lesson, it struck me.” activities. Bartlesville employ­ studied there for two years, but From the middle of that lesson Shirley is summed up in a few ees receiving allergy transferred to the University of on, she loved being in the air. words by Farrah Mojabi, control shots might encoun­ ter Shirley in the Oklahoma (OU) School of Nurs- Unfortunately, Shirley gave up center manager, Transportation Medical Center, her ing in Oklahoma City to achieve flying after Herbert passed away Logistics. “She is an amazing place of employment her lifelong passion. Upon gradu- in 1982, because with her small woman and an inspiration,” she for almost 60 years. ation from OU, Shirley returned stature, it was too difficult to said.

spirit Magazine 61 In the News

FACT SHEET February 2012 Hydraulic Fracturing: An Overview

About Hydraulic Fracturing Importance of Hydraulic Fracturing Hydraulic fracturing is essential to produce oil and Since the late 1940s, over 1 million wells have been natural gas that is otherwise trapped in low-permeability hydraulically fractured in the United States and more rock formations. It significantly improves the recovery than 2 million have been fractured worldwide. When from the reservoir by stimulating the movement of oil and used in conjunction with horizontal drilling, an advanced natural gas. drilling technology, hydraulic fracturing has made it It is important to understand where hydraulic possible to develop vast unconventional resources. fracturing fits into the entire drilling, well construction/ Without hydraulic fracturing and horizontal drilling, completion and production phases of oil and natural gas resources like gas from tight sands, coalbeds and shale activities. Hydraulic fracturing is not a method for drilling would remain largely undeveloped. According to the U.S. or constructing a well. Energy Information Administration, all of these resources To reach a hydrocarbon formation – thousands of combined accounted for 50 percent of U.S. natural gas feet below the surface and freshwater resources – the production in 2009 and are projected to account for hole (wellbore) is drilled in successive sections through 60 percent of supply by 2035. These sources are also the rock layers. Once the desired length of each wellbore contributing to growing U.S. oil production. section has been drilled, the drilling assembly is removed, and steel casing is inserted and cemented in place. As the well is constructed, concentric layers of steel casing A Safe and Proven Technique and cement form the barrier to protect groundwater Hydraulic fracturing is a safe and proven technique that resources from the contents that will later flow inside has enabled oil and natural gas resources to be developed the well. Next, only the section of casing within the safely for over 60 years. The National Petroleum Council hydrocarbon formation is perforated at the desired reported that “Up to 95 percent of wells drilled today are location. hydraulically fractured.” Many studies – and decades of The well is now ready for the hydraulic fracturing history – indicate that oil and natural gas operations, process. This process involves pumping fluid through the including hydraulic fracturing, are safe when wells are perforations. The fracturing fluid itself exerts pressure properly designed, constructed and operated. against the rock, creating tiny cracks, or fractures, in the reservoir deep underground. The fluid is predominantly water, proppant (grains of sand or ceramic particles) and a small fraction of chemical additives. Once fluid injection stops, pressure begins to Recent studies have found no substantiated dissipate, and the fractures previously held open by the connection between hydraulic fracturing and fluid pressure begin to close. Proppants then act as tiny groundwater contamination: wedges to hold open these narrow fractures, creating • A 2004 Environmental Protection Agency (EPA) pathways for oil, natural gas and fracturing fluids to flow study of fracturing of coalbed methane reservoirs more easily to the well. A plug is set inside the casing found “little or no threat” to underground sources to isolate the stimulated s ection of the well. The entire of drinking water. Hydraulic fracturing continues to perforate-inject-plug cycle is then repeated at regular be studied by the EPA. intervals along the targeted section of the reservoir. • A 2009 study by the Ground Water Protection Finally, the plugs are drilled out, allowing the oil, natural Council, an association of state regulators, gas and fluids to flow into the well casing and up to the reviewed 10,000 wells and found only one surface. complaint, which proved to be unrelated to The hydrocarbon/fracturing fluid mixture is hydraulic fracturing. separated at the surface, and the fracturing fluid (also known as flowback water) is captured in tanks or lined • In 2010, the Interstate Oil & Gas Compact pits. The fracturing fluids are then disposed of according Commission, representing 30 state governments, to government-a pproved methods. affirmed that there have been no verified cases Hydraulic fracturing operations generally of drinking-water contamination resulting from occur over a three-to-five day period. The entire well hydraulic fracturing operations in states where construction process (including hydraulic fracturing) shale gas is produced. takes only two-to-three months, compared to the 20- to-30 year productive life of a typical well.

© ConocoPhillips Company. All rights reserved.

62 ConocoPhillips continued ▲

There’s Power in Cooperation

Multiple Safeguards Protect Groundwater placed into production, the pressure inside the well drops below the pressure of the hydrocarbons outside the Protection of groundwater resources is important well. This pres sure difference causes oil, natural gas and through every stage of oil and natural gas development. fracturing fluids to migrate into the well. The well is the Below the surface, well integrity is crucial to isolate and path of least resistance for hydrocarbons to flow to the protect potable groundwater from hydraulic fracturing surface in a con trolled manner, rather than being driven and flowback fluids during completion operations upward through geological barriers. and from oil, natural gas and water produced from Beyond the mechanical safeguards of the well itself, the reservoir over the well life. Proper well design, groundwater is protected by physical factors. Hydraulic construction and monitoring are necessary to ensure fracturing groundwater is protected. typically A well is much more than a pipe in the ground. After occurs a wellbore is drilled through the rock, concentric layers of thousands of steel casing and cement are installed, creating multiple, feet below impermeable barriers between the inside of the well and freshwater the earth’s strata, including aquifer formations containing aquifers freshwater. and often Looking at a cross section of a well, the outermost more than a structure typically includes a shallow conductor casing mile below to stabilize the ground at the well surface and always the earth’s includes surface casing. The surface casing extends to surface. depths below freshwater aquifers, in accordance with Multiple government regulations, and is cemented in place with the layers of explicit intent of protecting useable groundwater. Inside permeable and this structure, there may be one or more intermediate impermeable casings. The innermost structure is a production casing rock separate that extends to the bottom of the well. Typically, cement the targeted is pumped into the open space between each casing and hydrocarbon the rock, forming a complete seal with multiple layers of formation protection. from the To ensure well integrity, the entire system is aquifers, pressure tested before the hydraulic fracturing process providing begins. Personnel at the well site continually monitor natural fluid injection rates and pressures throughout the geologic hydraulic fracturing process. This data can also be barriers to transmitted via satellite to remote operation centers the upward for off-site monitoring. Hydraulic fracturing operations migration of are immediately shut down in the event of unexpected fluids. pressure responses. Once hydraulic fracturing is complete and the well is

Frequently Asked Questions Who regulates hydraulic fracturing? we manage responsibly. We are confident in our ability to safely and responsibly develop oil and natural gas A range of local, state, federal and national laws and resources by using proven practices. regulations currently govern hydraulic fracturing operations. These rules include well permitting, well Where does hydraulic fracturing take place? materials and construction, air emissions, flowback and Hydraulic fracturing takes place in hydrocarbon-bearing produced water disposal, storm water management, and formations that are typically thousands of feet below the chemical recordkeeping and reporting. surface. It would take approximately five Empire State Is hydraulic fracturing safe? Buildings (1,250 feet each) on top of one another to reach a targeted formation at 6,000 feet below the surface. Yes. Well operations, including those involving horizontal drilling and hydraulic fracturing, are low risk activities that

In December 2011, media attention was ignited by the release of an EPA draft report, which found that, in Pavillion, Wyo., “Data indicates likely impact to ground water that can be explained by hydraulic fracturing.” Since then, the EPA has backtracked with the statement, “We make clear that the causal link to hydraulic fracturing has not been © ConocoPhillipsdemonstrated.” Company. The All rightspreliminary reserved. report was released prior to peer review. Natural Gas

spirit Magazine 1963 In the News continued from previous page construction date sometime around 2019. “The roundtable was a very open, Mega cool asset Production, according to Gary Sykes, transparent process that brought the hen you hear the name Amauligak, vice president, Canadian Arctic Busi- regulator, industry and stakeholders Wyou might think it’s the name of a ness Unit, would follow a few years together for a wide-ranging discussion new “Transformers” character. later. “Amauligak would be a true mega on the challenges of drilling in the Arctic Amauligak is ConocoPhillips’­ largest project,” Sykes said. “And as such, environment,” Sykes said. asset in the Canadian Arctic. Named the complexities of the design, project ConocoPhillips­ garnered positive feed- after a local migratory bird, it’s located approvals, construction, installation and back on its involvement in the review, 31 miles (50 kilometers) northwest of commissioning point toward a first pro- demonstrating a commitment to safety, Tuktoyaktuk at a water depth of approxi- duction date around 2022 to 2025.” the environment and carrying out Arctic mately 100 feet (30 meters) and is the The FEL 1 phase will require a Calgary- offshore operations responsibly. largest oil and natural gas field in the based, 25-person multidisciplinary team, This is particularly important to Conoco­ Beaufort Sea. Although not a Transformer including positions in Safety, Engineering, Phillips, which is the largest leaseholder per se, the Amauligak asset has the of discovered resources in the Canadian potential to morph into a big project. Arctic. With approximately 1.9 billion Recently, the Canadian Arctic Business Amauligak is ConocoPhillips’ barrels of oil equivalent net discovered Unit announced that the Amauligak asset resources, there are a lot of opportunities has entered into the first stage of the for- largest asset in the Canadian for Conoco­Phillips in this region. Looking malized project process, front-end loading Arctic and the largest oil and gas beyond FEL 1, Amauligak is seen as the (FEL) 1. This project is just the beginning, field in the Beaufort Sea. key to unlocking future development of but its potential has the team excited. ConocoPhillips’­ Arctic assets. FEL 1 is a three-year study to explore The Canadian Arctic spans a total all possible options and configurations to Subsurface, Commercial, Regulatory, of 1.4 million square miles (3.6 million allow the team to select a single develop- Environment and Stakeholder Engage- kilometers squared), and since the 1950s, ment concept. To make this selection, ment. Additional functional support and exploration has focused on the areas the team will need to evaluate the myriad external contractors will also be neces- of Mackenzie Delta, Beaufort Sea and of development options and configura- sary to move the project ahead. Sverdrup Basin. The Amauligak asset was tions. A project of this magnitude in the The announcement of this first stage of discovered in 1984 when there was signifi- Arctic is a complex process. With frigid the project comes after an industry Arctic cant activity in the area. Shifting econom- temperatures, dramatically variant hours Offshore Drilling Review and roundtable ics at the time created a halt of activities. of daylight and gigantic ice features, the hosted by Canada’s National Energy Twenty-eight years later, it’s hard not team will be faced with a multitude of Board (NEB) in 2011. ConocoPhillips­ to be excited as the Amauligak project additional technical challenges. participated in the review with a global, moves into FEL 1. Although still early Once the concept has been selected, multifunctional team to encourage effi- in the process, advancing Amauligak the next step is identifying success- cient Canadian Arctic offshore regulation, is positioning ConocoPhillips­ as a first ful economic merit in order to move advance the company’s Arctic interests, mover in the Canadian Arctic, which is a on to FEL 2 and 3. Passing through all and respond to NEB and stakeholder positive step forward for project propo- these phases would result in a potential expectations. nents and stakeholders alike. •

Above: The original bottom-founded rig, Moliqpak, used to delineate the Amauligak reservoir. Top right: Amauligak (Inuvialuit) – One of the first migratory birds to return to the Arctic each spring. Bottom right: An artist’s impression of the Amauligak Central Drilling and Production Centre.

64 ConocoPhillips continued ▲

Top knowledge sharers win 2011 Archimedes Awards

ow in their eighth year, the Archime- Ndes Awards represent excellence in Archimedes Award Winners knowledge sharing across the company. Give Alaska, Norway and Qatar The winning Networks of the Year, regions, teams and individuals demon- Grab Canada and Lower 48 strate how people in a global, collabora- Gather Canada and Russia Caspian tive workplace deliver additional value to Guts Algeria, Asia Pacific and Canada the company. Networks of the Year Global Chemicals, Pipeline & Subsea Systems “Employees around the world have Integrity, Power & Automation, and Project HSE made knowledge sharing part of their Hall of Honor Facility Optimization, Facilities Integrity and daily jobs, enabling the company to Upstream Rotating Equipment deliver even stronger results,” said Dan Ranta, director, Knowledge Sharing. Success Stories of the Year 13 winning stories, including four stories The Archimedes Give Award recog- representing HSE nized Alaska, Norway and Qatar for Honorable Mention Tank Network giving their knowledge to others. The Alaska Business Unit asset teams, along with other groups across the business, Canada oil sands applied flow distribu- Canada after an incident involving an gave an integrated plan and roadmap to tion technology to control steam coning operator during a routine commissioning an operator that delivered an economic in steam-assisted gravity drainage. Initial activity for a newly completed well. impact of $118 million. Establishing its efforts resulted in a $10 million economic own knowledge-sharing ambassador benefit for Surmont 2, with the potential Networks of the Year program, the Norway Business Unit of delivering $100 million in value from Networks are business-focused global worked with other business units to help Surmont overall. Through the Geophysics teams who deliver additional value to the them establish similar programs. During Network’s Ask & Discuss forum, Russia business through peer-to-peer problem the Qatargas 3 & 4 projects, an initiative Caspian gained multiple responses to solving and validating solutions. Cur- was undertaken to incorporate lessons improve the imaging, channel definition, rently, there are more than 150 Networks learned from Qatargas 2 and earlier size and location of the Kalamkas 3-D of Excellence at ConocoPhillips. Out of mega-train startups. Approximately 1,200 seismic dataset. 12 nominated networks, four were named lessons learned were included in the Networks of the Year. design and commissioning of LNG trains A two-time winner, Project HSE 6 and 7. The outcome reduced the pre- Network developed and implemented a dicted startup time of train 6 by several global electronic book for capturing HSE months and worked well above what was alerts and lessons learned. A first-time predicted for Qatar. winner, Pipeline and Subsea Systems Presented with the Archimedes Grab Integrity Network achieved $34.8 million Award, Lower 48 pulled knowledge from in savings resulting from knowledge Crude Oil Marketing, various trucking sharing of intelligent pigging, cathodic companies, and Engineering and Opera- protection, assessment and nondestruc- tions to improve production in the Eagle tive testing methods, and riser integrity Ford Field. The result was an increase in improvements. Establishing corrosion barrels of oil per day and an economic guidelines and offering global trainings, impact of approximately $54 million along with authoring articles for the over a four-month period. Canada also The Archimedes Guts Award recog- company’s Web-based encyclopedia, received the award for its knowledge nizes groups who share painful lessons OneWiki, the Global Chemicals Network gained from colleagues in the Lobo asset learned so that others do not have received its second win. With more than and Midland office, where they used a to repeat them. The Guts Award was 350 members, the Power and Automation new approach, conditioned monitoring, presented to Asia Pacific, Algeria and Network achieved a second win through to safely maximize time between main- Canada. The Australia Business Unit its ongoing development of upstream tenance activities. The economic impact implemented a rigorous new inspection standards with global applicability and was $26 million in cost avoidance and and repair strategy utilizing best practices leveraging the network’s communica- production increases. from around the world at Bayu-Undan. tion model to ensure safety and reliability For bringing multiple parties together, After a gas release incident, the Algeria issues are communicated with accuracy. Canada and Russia Caspian received the Business Unit embarked on a process To learn more about the Archimedes Archimedes Gather Award. Investigat- safety and training campaign to refocus Awards, including the Success Stories of ing flow distribution control technology awareness and prevent recurrence. Safety the Year by region, visit the Knowledge being used by partners and competitors, and training were also the outcomes in Sharing home page from eStream. •

spirit Magazine 65 In the News continued from previous page Employees honored at annual SPIRIT Awards

he company’s annual SPIRIT of Bob Herman, vice president, Health, Jim Mulva presents Bob Nadon with the Lifetime Achievement Award. TPerformance Awards honor employ- Safety and Environment, presented Life- ees who best exemplify ConocoPhillips’­ saver Awards to the three recipients, who highest standards of performance in were honored for performing the Heim- conducting business and contributing to lich maneuver. The night concluded as society. This year, 29 teams, three lifesav- Chairman and Chief Executive Officer Jim ers and two individuals were recognized Mulva presented Bob Nadon and Peter at the awards event, which featured the Micciche with Individual Lifetime Achieve- theme Looking Back, Moving Forward. ment Awards. Members of the 29 teams worked Nadon was honored for his involve- diligently during 2011 on projects ranging ment with Big Brothers, the Special from safely evacuating employees from Olympics, World Police and Fire Games, Libya during major civil unrest to elimi- the Alberta Luge Association, and nating the impact of the California cap Calgary Family Services. In addition and trade rules and the Low Carbon Fuel to his community volunteer activities, Standard on the company’s refineries. Nadon enthusiastically mentors young

Below left: Cathy Cram, manager, Strategic Issues, displays a piece of shale as she accepts a SPIRIT Award on behalf of the natural gas team. Beginning in 2011, the team implemented a comprehensive public affairs campaign to ensure employees and external stakeholders understand the benefits and opportunities of natural gas. Below right: Jim Mulva presents Peter Micciche with the Lifetime Achievement Award.

66 ConocoPhillips continued ▲

Above: In line with the event’s Looking Back, Moving Forward theme, the evening People and Safety Project Excellence featured music from the Beatles per- • Billings and Lake Charles Refineries’ • Natural Gas Campaign formed by The Return. VPP Star • Australia Pacific LNG Utilities • Safety As a Way of Life Project professionals within his HR organization. • Global Wellness Initiatives • Alaska BRU Wellhead Compression “This is definitely the highlight of my • U.K. Upstream HSE Team Surpasses Expectations life and my career,” Nadon said as he • Libya Evacuation Team • Non-Conventional Reservoir SMART accepted his award. “I’m really proud • Nipomo Creek Restoration Technology to say I work for ConocoPhillips­ and am part of an organization that recognizes Operating Excellence Environmental and Community employees both on the job and in their • Margin Maximization Trio Responsibility respective communities.” • Commercial and Downstream • Houston, We Don’t Have a Problem! Micciche’s commitment to his com- Business Improvement • Bayway Hurricane Response Team munity earned him the prestigious award. • Eagle Ford Condensate Operations/ • Humber Education Excellence Aside from his countless volunteer activi- Marketing • Bohai Oil Spill Response Team ties, he serves as mayor of his commu- • 2011 Surmont Turnaround and • California Climate Change Solutions nity. Among his proudest achievements Optimization Team Team as mayor, he points to a reduction in the • COPI Well Operations Onshore and • Ekofisk I Cessation Project cost of living, lowering property taxes by Offshore Drilling 30 percent, completing the city’s com- • Darwin Operations Centre DLNG Lifesavers prehensive plan, developing recreational Production Threat • James Dodge, third mate, Polar Resolution areas and installing street crossings at • San Juan Base Optimization schools. • Mary Ann Peeler, operations analyst, Commercial Negotiations and Hartford Products Terminal “I volunteer because I’ve been blessed Transactions • Bob Shuttleworth, area leader – with good fortune in my life, and I was Tetney, Humber Refinery raised to share my blessings. What • APLNG Marketing Team • Norway 21st Bid Round Team makes it significantly easier is our com- Individual Lifetime Achievement pany’s support of employee volunteer • Revolving Credit Facility Renewal • Robert (Bob) Nadon efforts,” Micciche said. “There are so • Pipeline and Terminal Dispositions • Peter Micciche many Conoco­Phillips employees glob- Teams ally that do so much to make the world • Collaborative Effort Solves a “Rare” Challenge a better place, which makes tonight’s recognition all the more humbling.” • • Methane Hydrates Well Test Funding

spirit Magazine 67 I’ve been hearing What is in the news that oil redistricting and how companies receive “subsidies” does it affect me? from the government. Why is the Is that true? Keystone XL Pipeline debate so important to ConocoPhillips? As the 2012 elections ramp up, what issues should I be most interested in as an oil and gas employee? Why is Washington targeting our industry for tax increases? What can we do about it?

I’m new to the area. How can I become involved in the political process here?

Understanding the policy issues that affect the oil and gas industry can be overwhelming. Let The PoliTicker make it easier on you. Keep up with the most pressing legislative and regulatory issues by following this interactive blog from Government Affairs. Ask questions, get answers, connect with fellow employees, and nd important election and voter information.

Visit eStream and select The PoliTicker under Quick Picks In the News continued from previous page continued ▲

Sirte Field Hospital – Today, International Medical Corps is committed to helping Libya rebuild and recover. The organization has identified health care facilities in need of support and will provide additional staffing and supplies. Photo by Jean-Baptiste Lopez www.fotozean.com Donation supports rebuilding of Libya hile the conflict in Libya has ended, Developed by the International Medical played an integral Wthe process of rebuilding has just Corps (IMC), in conjunction with the role responding begun. Libyan people have faced short- U.S. Agency for International Develop- to the crisis in ages of food, water, fuel, electricity and ment, the project will bring in 320 nurses Libya for nearly access to adequate health care. Health and technical personnel to treat those a year, providing facilities are operating beyond capac- wounded in the conflict. critical staffing, ity and are in need of skilled nurses to “We are proud to support such an medical sup- treat those wounded during the conflict, important effort that will help rehabilitate plies and training as well as to provide basic health care. those injured during the conflict,” said across the nation. Don Robertson As one of the largest foreign companies Don Robertson, president and general In Tripoli, home of operating in Libya, ConocoPhillips has manager, Libya. “It is our hope that this the company’s Libya office, IMC supplied chosen to make a significant contribution contribution will aid in the continuous surgeons and nurses within 24 hours in support of these needs. rebuilding of Libya.” of the outbreak of violence. Over the In early January, ConocoPhillips In addition, the IMC-run project will few months that followed, IMC trained and the Libya Business Unit donated provide essential nursing care to the more than 200 front-line medics, helped $500,000 to a project that will support Libyan people and simultaneously train reopen hospitals, assisted with medical the rebuilding of Libya by treating the Libyan nurses with vital skills for a self- evacuations, and delivered medicine and wounded and training Libyan nurses. sustaining medical system. IMC has supplies. •

Left: Following the out- break of conflict in Libya in February 2011, Inter- national Medical Corps immediately deployed to deliver critical emergency health care services. Far left: International Medical Corps continues to support hospitals in Tripoli, Sirte and other Libyan cities while also running mobile medical clinics to provide primary health care to those who remain displaced.

spirit Magazine 1969 In the News continued from previous page

withstand a certain level of ice thickness. News Briefs This joint design project is expected to be Conoco­Phillips announces sale completed by the end of 2013. of Vietnam Business Unit “We are glad to partner with Conoco­ ConocoPhillips­ announced in February Phillips to jointly design this ice-worthy that, as part of its ongoing strategy to jack-up rig for the Arctic seas. The create shareholder value, it has entered features of this jack-up rig make it a cost- into an agreement to sell its Vietnam effective and promising drilling solution Business Unit for a total of $1.29 billion for the Arctic offshore,” said Dr. Foo Kok plus customary working capital Seng, centre director, Keppel Offshore & adjustments. Marine Technology Centre. “In leverag- Conoco­Phillips has entered into ing the combined expertise, resources definitive agreements with a subsid- and research findings of Keppel O&M iary of Perenco to sell its three wholly and ConocoPhillips,­ we believe this joint owned subsidiaries that separately hold project will achieve significant break- its 23.25 percent participating interest throughs in offshore Arctic drilling.” in Block 15-1, 36 percent participating Conoco­Phillips headquarters interest in Block 15-2 and 16.3 percent Caspian president receives design receives award participating interest in Nam Con Son prestigious award The Connecticut chapter of the American Pipeline. The transaction is anticipated to Colette Cohen, president, Caspian, Institute of Architects announced that close in the first half of 2012. recently received the commemorative Pickard Chilton has won an award for the “The sale of our Vietnam Business medal for the 20th anniversary of the firm’s design of the Conoco­Phillips head- Unit is an important component of our Republic of Kazakhstan independence at quarters’ west campus in Houston, Texas. $15 billion to $20 billion 2010-12 asset the official ceremony held at the House of From the 135 submissions, the jury divestiture program. Conoco­Phillips has Government in Astana, Kazakhstan. selected four nonresidential projects to conducted business in Vietnam for more “We are especially proud that in the receive design awards. Jurors remarked than 15 years, and we are pleased that large-scale achievements reached by that Conoco­Phillips’ award-winning Perenco has recognized the value of these Kazakhstan over the years of indepen- design “is in the tradition of the neo- quality assets,” said Al Hirshberg, senior dence, there is a measure of Conoco­ avant-guard. It is an articulated version vice president, Planning and Strategy. Phillips’ contribution,” said Kerr Johnston, of Le Corbusier. A pristine, clean set of For 2010-11, Conoco­Phillips’ asset president, Russia/Caspian. “We regard it shapes, sunlight and shadows are at divestiture program yielded $10.7 billion as recognition of the input that Conoco­ play.” in proceeds, in addition to $9.5 billion Phillips and Colette Cohen have made to from LUKOIL share sales, giving total dis- the development of Kazakhstan’s oil and Conoco­Phillips recognized positions of $20.2 billion over this period. gas industry and the country as a whole.” for contributions The sale of the Vietnam Business Unit The prestigious medal is awarded to citi- The Cherokee Area Council Boy Scouts is just one part of Conoco­Phillips’ plan to zens of Kazakhstan and foreign citizens of America presented ConocoPhillips­ create value for shareholders through a who have demonstrated commitment to with the Second Century Award for the continued focus on optimizing the port- development of the national economy, company’s donations and volunteer folio, enhancing returns, strengthening as well as to commemorate the 20th anni- efforts. These contributions have made it financial flexibility and increasing share- versary of Kazakhstan’s independence. possible for the council to teach leader- holder distributions. ship and character-building skills to many young men and women. Rand Berney, Conoco­Phillips working on first ice- senior vice president, Corporate Shared worthy jack-up rig for Arctic offshore Services, accepted the award on behalf Conoco­Phillips is working with Keppel of the company. Offshore & Marine Technology Centre to design a first-of-its-kind ice-worthy Sabrina Watkins named to jack-up rig to operate in one of the harsh- ISHN’s Power 101 list est marine frontiers, the Arctic seas. Industrial Safety and Hygiene News (ISHN) The jack-up rig will have dual canti­ magazine, a safety and health trade publi- levers to optimize drilling operations cation, named Sabrina Watkins, manager, within a limited time frame. The rig is Sustainable Development, to their Power capable of operating in a self-sustained 101 list. Individuals on the list must meet manner for 14 days and is equipped with Caspian President Colette Cohen receives stringent criteria, including possessing the a hull that is designed for towing in ice. an award from the Republic of Kazakhstan ability to reach an international audience, It is also able to resist the impacts from prime minister on the eve of the 20th anni- to influence executives and policymakers, multiyear ice floes and ridges, as well as versary of Kazakhstan’s independence. and to facilitate collaboration. •

70 ConocoPhillips continued ▲

In early February, a group of Transportation Engineering & Projects employees gathered with their contractor teams to meet for two days of knowledge sharing on HSE best practices, share information and initiatives, and network with new faces. At the end of the summit, many contractor teams were presented awards by ConocoPhillips Transportation Leadership for their exceptional HSE performance. Above is a photo of the contractor teams who were honored.

ConocoPhillips recognized for spill response project he Louisiana Mid-Continent Oil and industry drilling operations to restart fol- TGas Association (LMOGA) awarded lowing the drilling moratorium, thereby its Blue Heron Award to the Marine Well restoring employment to thousands of Containment Company (MWCC) and people across the Gulf Coast Region,” its four founding member companies, said Bobby Nolen, general manager, including Conoco­Phillips, Upstream HSE. for their response to In July 2010, Conoco­ the Deepwater Horizon The Blue Heron Phillips, along with incident. The award was Award recognizes Chevron, ExxonMobil presented Jan. 25 in and Shell, announced a New Orleans at the asso- exceptional plan to build and deploy ciation’s annual meeting. environmental a rapid response system Conoco­Phillips among Houston’s The award recognizes stewardship to capture and contain healthiest employers exceptional environmen- associated with oil oil in the event of a tal stewardship associ- and gas activity. future underwater well he Houston Business Journal has named ConocoPhillips­ one of Hous- ated with oil and gas blowout in the deep- T ton’s Healthiest Employers. This award activity. MWCC and the water Gulf of Mexico. recognizes small, medium and large four founding members were honored for The system is operated and maintained employers who have health and well- their efforts in deepwater well contain- by MWCC, a nonprofit organization. The ness programs that bring creativity, lead- ment in the U.S. Gulf of Mexico. creation and development of this sophis- ership and cultural change to improve “In addition to recognizing envi- ticated system, which is scheduled for the lives of their employees. The ronmental stewardship, LMOGA also completion this year, will greatly enhance company also received the Paragon recognized the role MWCC and founding the industry’s ability to ensure a quick Award for teamwork and integration between departments. member companies played in enabling and effective response. • •

spirit Magazine 1971 In the News continued from previous page It started with a pitch ConocoPhillips Australia sponsors the Australian Baseball League (ABL) n December 2011, ConocoPhillips Isponsored the inaugural ABL All Star Game in Perth, where West Australian­ team Perth Heat played the ABL All Stars with some of the best players in base- ball from Australia, Asia and the United States. The sponsorship was very suc- cessful, with global television coverage and a great turnout from ConocoPhillips employees. After such a terrific introduction to the league, the Australian Business Unit went on to support the ABL post-season, which involved sponsorship of the semifi- nals and championship series in January and February 2012. The 2012 ConocoPhillips ABL Cham- pionship Series was held in Perth, where the Perth Heat played the Melbourne Aces in front of a crowd of 4,000. The Heat won the championships in a three- game thriller. It was a fantastic experi­ence for Creeger said. ConocoPhillips ballpark signage is promi- Conoco­Phillips employees and their ConocoPhillips received high-profile nent in the background as Perth Heat ace families. Todd Creeger, president, Aus- exposure through ballpark signage, game Warwick Saupold delivers a pitch. tralia Business Unit West, had the rare merchandise, game announcements and experience of throwing out the first pitch extensive television coverage across a joint venture with Major League Base- at the third game. Australia, the United States and Asia. ball (MLB) that enables the ABL to estab- “Throwing out the first pitch at the Over the past two years, the ABL has lish relationships with MLB clubs and championship series was a fantastic made considerable progress in promot- attract talented U.S. players. In 2011 and experience. It was a full house at the ing and advancing baseball in Australia, 2012, 21 MLB teams were represented ballpark. The crowd was really excited, and ConocoPhillips was proud to support in the ABL through players and coaches, and the atmosphere was amazing,” these significant ABL events. The ABL is and eight ABL players were signed by MLB clubs. This increased international profile, and interest in the sport has

“Throwing out first pitch at the championship series was a fantastic experience.” – Todd Creeger

enabled the ABL to secure local and international television coverage. Having a global energy company, such as Cono- coPhillips, sponsor two major events in the ABL 2011/2012 season was also an important recognition of the development of baseball in Australia. •

Left: Australia Business Unit West Presi- dent Todd Creeger (second from right) strikes a pose with a local team Perth Heat player and mascots before the championship game.

72 ConocoPhillips continued ▲

North Slope project tests innovative hydrate production technologies

ate last spring, a well was drilled on to produce methane hydrates since 2003. Lthe North Slope of Alaska to test In 2008, ConocoPhillips’­ application to innovative technologies for producing the DOE to perform the first field trial of methane gas from hydrate deposits. The this technology was approved. The joint result of a partnership between Conoco­ project aims to define, plan and conduct Phillips and the Department of Energy a field trial of methane hydrate produc- (DOE), the well officially entered its final tion whereby carbon dioxide molecules production testing phase at the begin- ning of 2012, setting the stage for what could be a breakthrough in unlocking the “This trial is an important step in potential methane hydrate resource. Methane hydrate is a cage-like lattice developing technology to access of ice with methane molecules – the this potential resource while chief constituent of natural gas – trapped sequestering carbon dioxide.” inside. If methane hydrate is either – Helen Farrell warmed or depressurized, it will revert back to water and natural gas. When brought to the earth’s surface, one cubic are exchanged in situ for the methane foot of hydrate releases 164 cubic feet of molecules within a hydrate structure, natural gas. While global estimates vary releasing the methane for production. To date, production testing of gas considerably, the energy content of “This project holds exciting poten- hydrates has not demonstrated commer- methane in hydrate form is significant, tial,” said Helen Farrell, manager, Shale cial viability. This potential supply of clean potentially exceeding the combined Resources. “At present, there is no fossil fuel will remain untapped unless a energy content of all known fossil fuels. technology to produce natural gas eco- technically and economically viable means Conoco­Phillips, in collaboration with nomically from hydrates. This trial is an of producing methane from hydrates is scientists from the University of Bergen, important step in developing technology found. This field trial may ultimately set Norway, has been developing technology to access this potential resource while the stage for larger-scale, long-term tests sequestering carbon dioxide.” needed to advance viable production The project will significantly increase technologies for methane hydrate. scientific knowledge about hydrates. It While the resource will not be will advance hydrate reservoir modeling accessed for some time, hydrates are capabilities as the algorithms needed to expected to remain an important poten- simulate the exchange of carbon dioxide tial energy resource for many years to molecules for methane molecules are come, since natural gas is the cleanest developed and calibrated. The tests will fossil fuel. Over the long term, domestic also provide key data on drilling, comple- methane hydrate resources could rep- tions and surveillance technologies resent increased energy security for the related to gas hydrates. United States. •

Above left: Spotting gas-mixing skid, inside temporary berming, beside nitrogen and carbon dioxide tanks Far left: Rigging-up lubricator for running of sand control screens on slickline Left: Wellhead before installation of wellhouse Top: Spooling logging tools up into lubrica- tor prior to electro- magnetic completion mapping

spirit Magazine 1973 In the News continued from previous page continued ▲ ConocoPhillips participates in World Petroleum Congress he World Petroleum Congress and It marked the 20th congress, which made Center and the Qatargas 3 & 4 projects. TExhibition, held every three years, is its first-ever trip to the Middle East. Chairman and Chief Executive Officer one of the largest and most prominent oil ConocoPhillips was a proud platinum Jim Mulva attended this year’s event and and gas industry gatherings in the world. sponsor of the congress, which provided participated in the plenary session, Solu- The most recent event, which focused a global platform for the company to tions for Global Energy Challenges: Regu- on Energy Solutions for All – Promoting discuss both conventional and noncon- latory Certainty, Environmental. Mulva’s Cooperation, Innovation and Investment, ventional resources, such as oil sands, remarks focused on the viability of natural was held in December 2011 in Doha, shale and natural gas. ConocoPhillips also gas being a part of the global energy Qatar, and included more than 4,000 promoted its efforts in the Qatar Region, solution, citing energy security, economic delegates, 600 media and 550 presenters. including the Global Water Sustainability opportunity and sustainability. •

Jim Mulva participates in the plenary session.

Left: Carlotta Chernoff, manager, Lower 48 New Ventures Explora- tion, hands out information and branded souvenirs. Top left: ConocoPhillips Qatar President Erec Isaacson welcomes the Qatar Minister of Energy & Industry His Excellency Dr. Al-Sada to the ConocoPhillips booth. Right: Sand sculptors from the World Sand Sculpting Academy created incredible displays of local landmarks, as well as the Conoco­ Phillips logo.

Above left: The State of Qatar constructed the new, state-of-the-art Qatar National Convention Centre after being awarded the 20th World Petroleum Congress and Exhibition. The center is the only one of its kind built to the gold certification standard of the Leadership in Energy and Environment Design rating system of the U.S. Green Building Council. The steel façade is a tribute to the Sidra tree, an iconic element in Qatari culture.

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Scan for a video from A Better Way to Bank our CEO, Kelly Diven. BARTLESVILLE, OK www.66fcu.org FEDERALLY INSURED BY NCUA HOUSTON, TX www.copcu.org (800) 897-6991 In the News Human Resources is leading the charge for change

t is said that the only constant in life manager, Corporate Staffs. “As strategic a solid step toward equipping the HR Iis change. Writer John A. Simone Sr. partners to the businesses, HR plays team to lead the company through the put it this way: “If you’re in a bad situa- a critical role in proactively working inevitable tides of change. tion, don’t worry, it’ll change. If you’re in a with businesses to navigate employees good situation, don’t worry, it’ll change.” through all types of change. We realized Retooling In early 2011, it was in this spirit that that our first step involved preparing In July, with the repositioning under the ConocoPhillips Human Resources ourselves with the knowledge and skills way, the Leadership and Development leadership team formulated a plan to to understand and deal with change, as team (L&D) took a fresh look at an online equip the HR function to better under- well as how best to facilitate and lead Change Management Toolkit initially stand and lead through change. “Change change in the businesses we support.” is inevitable – it’s a part of business just as it is part of life,” said Laura Wang, HR Channeling change In planning the June 2011 Global HR “We tried to Conference, the topic of change merited anticipate future top billing. The agenda included prepar- “As strategic partners needs and ensure ing HR to become a stronger strategic the material was to the businesses, partner, enhancing communications and HR plays a critical honing the function’s change leadership timely, relevant, role in proactively skills. As if foreshadowing the soon-to- understandable and be-announced repositioning, the HR easy to access.” – Michael Sullivan working with team spent the entire second day of the businesses to conference with internal and external navigate employees through all experts, discussing the challenges and phases of change and how individuals developed to support the company types of change.” – Laura Wang adapt to and sustain change. Partici- through another notable change – the pants agreed the conference represented merger of Conoco and Phillips. The

Three Phases and Nine Steps of Change

9 8 Formalization

Celebration

1 2 7 Resentment Anger/Fear 3 Implementation Disengagement 4 Resistance 6 5 Search for Resignation/ Solutions Acceptance

Source: Adapted from ConocoPhillips’ HR Change Management Toolkit

76 ConocoPhillips

People, Partnerships, Progress

toolkit mainly addressed behavioral regarding the repositioning and other she observed significant interest in the aspects of change and how to build and topics relevant to change. Begun in Phases of Change model. “We showed form new organizational teams. “Knowing August, the Conversations are ongoing, the model when discussing the impor- this resource would prove valuable during and topics and agendas are generated by tance of managing stress during times of the repositioning, we tried to anticipate an advisory group that meets monthly. change. Employees were relieved to hear future needs and ensure the material To enhance knowledge-sharing value, was timely, relevant, understandable and individuals from other areas of the busi- easy to access,” said Michael Sullivan, ness are invited to share their expertise advisor, L&D. on the calls. In August, participants “Employees were With input from an ad hoc advisory learned how to identify and address relieved to hear group of HR business partners (HRBPs) change-related stress from Michael Hack, that various representing major lines of businesses, manager, Global Workplace Solutions. an HR Guide on Change was created Dean Acosta, director, External Communi- reactions are normal cations and Media, joined the September when a change is call to share the repositioning communi- first announced and cation strategy. HRBPs from across the that adjusting to change becomes “To date, I business also shared their experiences have trained with change management prior to the easier with time and experience.” approximately 30 repositioning. Heather Sirdashney, current – Robin Yardley supervisors, with HR manager, L48, shared lessons learned on the strategies the Commercial busi- excellent results ness used to navigate through organiza- that various reactions are normal when and feedback.” tional changes. a change is first announced and that – Karen Augustino “The insight and level of detail these adjusting to change becomes easier with subject-matter experts provide has sig- time and experience,” Yardley said. nificantly helped our organization be more By mid-October, an additional 200 HR to help HR lead itself, supervisors and professionals had taken advantage of a employees through large-scale organiza- condensed version of the training – both tional change. in person and virtually – to strengthen Among the many HRBPs who adopted “The insight and their support of the businesses. the materials was Karen Augustino, who used sections of the toolkit to create an level of detail these Building teams, interactive presentation for supervisors subject-matter building the future in her business unit, Corporate Finan- experts provide has The repositioning prompted significant cial Shared Services. “I used some of significantly helped staffing requirements for the two new the models and theory as the building organizations. To accomplish this work, blocks for training that focused on giving our organization HRBPs partnered with businesses, as supervisors practical guidance and be more effective change leaders.” well as with a dedicated Workforce role-play scenarios to help them respond – Jennifer Sefton Planning team, to analyze future staffing effectively to their employees’ ques- needs and help structure the new teams. tions and concerns,” Augustino said. “To “We have been fortunate to draw heavily date, I have trained approximately 30 on our change management materials supervisors, with excellent results and effective change leaders,” said Jennifer to work through the complexities and feedback.” Sefton, interim manager, L&D. inherent challenges of this effort,” Sefton Toolkit materials were also shared said. The Workforce Planning team has on the Supervisor Resources page of Training for transition also used the information to support the Repositioning intranet site to help In early October, the HR function gained supervisors’ efforts to maintain safety and supervisors manage the change process further momentum with the addition productivity throughout the transition. in their teams. of a customized skill-building training Beyond the repositioning, change will course titled Making Change Work for continue to be a way of life in the two Opening the door You, developed in partnership with Nigel new companies. Once the transition dust to Conversations Bristow of Targeted Learning. has settled, the routine fluctuations of the L&D also supported HR leadership with An eight-hour train-the-trainer course business world will take over. And when a monthly conference call with global HR was offered to 20 HRBPs identified as they do, two well-equipped HR teams called Conversations on Change. These being most affected by the repositioning. will be poised and ready to guide their updates allow HR leadership to provide When Robin Yardley, HRBP, Technology, respective organizations through what- timely and transparent communications shared the training with the business, ever the future holds. •

spirit Magazine 1977 P.O. Box 2197 Houston, TX 77252-2197

spirit Magazine is published quarterly by the On Assignment ConocoPhillips Internal Communications Department.

Tami Hutchinson (Oil Sands, Page 22) is communica­ Address mail to spirit Magazine, ConocoPhillips, MA3132, P.O. Box 2197, Houston, TX 77252-2197, or send email to tions lead, Oil Sands, ConocoPhillips Canada. She has the editor at [email protected]. been with ConocoPhillips since 2008. Tami began her career as a journalist in Calgary. She then moved on Ray Scippa to work several years as a communications consul­ Executive Editor tant for one of the largest public relations agencies in Michelle Gunnett, Designer Canada before leaving to gain experience as a project manager in an investor relations firm. Since joining Contributing Editor: Andrea Urbanek, In the News ConocoPhillips Canada, Tami has worked exclusively on oil sands commu­ Internal Communications: Prabha Abraham, Nellie Betzen, nications with a focus on reputation management, communications support Whitney Burton, Derrick Hanna, Kristi Richardson, and collaborative industry communications. Sharon Rode and Monica Silva

Jeff Callender (Ferndale, Page 28) is regional direc­ Creative Services: Daniel Bishnow, Kevin tor, Public Affairs and Communications, Conoco­ Bonny, Jenny Brown, Beth Grover, Garth Hannum, Susie Howey, Larry Jones, Paul MacFarlane, Rich Ostrem, Phillips. Jeff began his career in public affairs with Karen Sivils, Travis Snow, Holly Strople, Pamela Sung, Security Pacific Bank (later acquired by Bank of Bo Wilson and Chris Young America), where he spent nine years in government relations and employee and executive communica­ Contributors: Dean Acosta, Aftab Ahmed, Summer tions. Jeff joined Union Oil Company in 1989 as a Austin, James Bartlett, Nancy Beaty, Catherine Biss, public relations representative. He switched to the Gary Brush, Amy Burnett, Jeff Callender, Marshall Cohen, Chris Cook, Jacqueline Davis, Sarah Edman, pharmaceutical industry in 1993, accepting the posi­ Vicquishe Elmore, Kathryn Donelson, Bob Henegar, tion of communications manager for CIBA Vision in Jan Hester, Alissa Hicks, Vinnika Johnson, Jennifer Atlanta, Ga. He returned to Southern California in 1997, where he served for Lange, William Lukens, Janet Messenger, Farrah Mojabi, seven years as manager of public affairs and communications for Tosco, and Nathan Murphy, Yvonne Myles, Tony Negri, Sue Pattison, later ConocoPhillips. In 2004, Jeff moved to ConocoPhillips’ corporate head­ Naomi Spector, Bill Stephens, Ric Sweeney, Gary Sykes, quarters in Houston, Texas, where he was director, Issues Management. Jeff Courtney Timm, Natalya Trekhleb, Shannon Vogt, Bettina assumed his current position, based in Ferndale, Wash., in August 2007. Jeff von Schubert, Jennifer Werbicki, Jennifer Williams, John has a B.A. in political science from Claremont Men’s College and a master’s Williams, John Wright, Lisa Zievers and Rosy Zuklic degree in business administration from Loyola Marymount University. Business Printing and Finishing: Mike Cranor, Beth Foster, Randy McDonald, Frank Mitchell, Karen Marion Oehlmann (Joachim Asmussen, Page 54) Taylor, Randy Templeton and Nancy Vaughn has been employed at ConocoPhillips Germany since January 1996. Her first job, advisor, Brand spirit Magazine is printed at the Conoco­Phillips Printing Center in Bartlesville, Okla. Development, included supporting the project Service Station Design for 2 1/2 years. In the For requests related to the spirit Magazine mail­ing years that followed, she took charge of various list, please contact Beth Foster at tasks in the Innovation department, as a Six [email protected], Sigma Black Belt in the area of Six Sigma and or call 918-661-0428. Manager HSE. Today, as manager, Retail Ser­ This issue of spirit Magazine contains forward-looking statements within the meaning of the “safe harbor” provisions of the Private Securities Litigation vices, she heads the areas of Brand Strategy and Reform Act of 1995. Actual outcomes and results may differ materially from Communication, Training, and Cards and Operator Management and is also what is expressed or forecast in such forward-looking statements. Economic, business, competitive and regulatory factors that may affect ConocoPhillips’ responsible for daily sales control. Outside of work, Marion likes to spend business are generally as set forth in ConocoPhillips’ filing with the Securities her free time with her family most of all – and, if possible, travel. If there is and Exchange Commission (SEC). Unless legally required to do so, Conoco­ Phillips is under no obligation (and expressly disclaims any such obligation) still a bit of time left over after that, she enjoys a good book. to update or alter its forward-looking statements whether as a result of new information, future events or otherwise.

spirit Magazine is printed entirely on Forest Stewardship Council™ (FSC) certified paper. FSC certification ensures that the paper used in this magazine contains fiber from well-managed and responsibly harvested forests that meet strict environmental and socioeconomic standards. We’re proud to be one of the first energy companies to make this significant move to help our environment. The FSC logo on our corporate magazine signals not only FSC certification but also ConocoPhillips’ commitment to improving the environment. Our name is changing. Our commitment to your lubrication needs isn’t.

We’re still just a phone call away. Whatever your application—oil extraction, refining, gas gathering and transmission, pipeline operations, heavy- or light-duty equipment, general aviation or passenger cars and trucks—we offer an extensive array of high-quality lubricants engineered to a standard of excellence you’ve come to expect. For more information about our branded lubrication products, contact Tony Negri at 832-486-3237 or [email protected].

Copyright © 2012 ConocoPhillips Company. ConocoPhillips, Conoco, Phillips 66, 76, Kendall and their respective logos are trademarks of ConocoPhillips Company in the U.S.A. and other countries. T3-CPL-1593 Committed to Excellence

Achieving operations excellence includes protecting the health and safety of everybody who plays a part in our operations and lives in the communities in which we operate. We will conduct our business with respect and care for the environment and systematically manage risks to drive sustainable business growth. Strive for excellence!

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